This paper analyzes the effects of non-atmospheric consumption externalities on optimal commodity taxation and on the social cost and optimal levels of public good provision. A negative consumption externality, by lowering the social cost of public good provision, may require the second-best...

Based on a dynamic general equilibrium model we study how the composition of technical progress, along three dimensions, aspects transitional dynamics, with an emphasis on the speed of convergence. The three dimensions are, first, the degree to which technical change is embodied, second, the...

We analyze the effects of a generalized class of negative consumption externalities (asymmetric and non-atmospheric) on the structure of efficient commodity tax programs. Households are not only concerned about consumption reference levels - that is, they gain utility from "keeping up with the...

The standard neoclassical growth model with Cobb-Douglas production predicts a mono- tonically declining saving rate, when reasonably calibrated. Ample empirical evidence, however, shows that the transition path of a countrys saving rate exhibits a rising or non- monotonic pattern. In important...

This paper analyzes the impact of positional preferences, exhibiting conspicuous consumption and conspicuous wealth, on optimal consumption- and income taxes, for an endogenous growth model with public capital. Positional preferences raise the endogenous growth rate if the elasticity of...

The standard neoclassical growth model with Cobb-Douglas production predicts a monotonically declining saving rate, when reasonably calibrated. Ample empirical evidence, however, shows that the transition paths of most countries saving rates exhibit a statistically significant hump-shaped...

Three theoretical benchmark models of diffusion of new technologies are the substitution, mortality and social-learning models. These models tend to generate symmetric, right-skewed and left-skewed S-curves respectively. The empirical literature has focused primarily on fitting either Logistic...

The question of whether empirical models are able to forecast the equity premium more accurately than the simple historical mean is intensively debated in the nancial literature. The low prediction power is disappointing, even when using nonparametric models that make use of typical predictor...

The bottom-up national approaches to implement global climate policy under the current United Nations scheme raise concerns about carbon leakage and distributive justice. To limit these concerns, some propose switching to a consumption based emission accounting principle and implementing an...

This paper extends a method developed by Hall (2014) to characterize the long-run distribution of public debt and applies it to Austria. We use Bayesian estimation techniques to incorporate data from other countries which makes the model applicable to cases in which available time series is...