This paper explores the link between an environmental policy and economic growth employing an extension of the Neoclassical Growth Model. We include a state equation to renewable natural resources, and consider natural resources as a component of the aggregate productivity. It is assumed that...

We present an algorithm and software routines for computing nth-order approximate solutions to dynamic, discrete-time rational expectations models around a nonstochastic steady state. We apply these routines to investigate the optimal monetary policy with commitment (and from a ``timeless...

This paper develops a dynamic stochastic model to examine the joint patent application and renewal behavior under an international patent protection regime. This framework makes it possible to utilize both the cross-sectional (multi-country filing) and the time-series (patent renewal) dimensions...

We give two procedures for determining whether efficient Pareto improving local changes are possible. When they are, the procedures compute for them. Any procedure generating efficient and Pareto improving changes can be replicated by these procedures. The two programs form a striking duality....

This paper analyzes investment effect of tradable permit program (TPP) when emission permits are bankable and there is technological uncertainty regarding abatement cost. In the absence of uncertainty, a firm's incentive to environmental investment decreases under a bankable TPP compared to a...

The main goal of this paper is to investigate the role of campaign fund in congressional careers. To achieve this goal, we specify a dynamic model of career decisions of a member of Congress. In particular, we model how the amount of campaign funds raised affects the probability of winning...

Price caps are a popular form of monopoly price regulation. One of its disadvantages is the perverse incentives that regulated firms might have to scamp on cost reducing effort during the last years before a price review. In order to avoid this problem a “rolling cap†contract was...

The paper analyses how barriers to communication across social groups affect economy-wide productivity and factor accumulation. Using a dynamic model of an economy that includes a reproducible capital stock (physical or human) and effective labour, social barriers to communication are shown to...

We derive necessary and sufficient conditions for the occurrence of ergodic oscillations and geometric sensitivity in a two-sector model of economic growth with labor augmenting externalities. We transform the Euler equation into a first order backward first order equation. Factor intensity...

Certain problems in comparative statics, including (but not exclusively) certain problems in consumer theory, cannot be easily addressed by the methods of lattice programming. One reason for this is that there is no order on the choice space which orders choices in a way which conforms with the...