Showing 1 - 10 of 221
Unilateral second-best carbon taxes are analysed in a two-period, two-country model with international trade in final goods, oil and bonds. Acceleration of global warming resulting from a future carbon tax is large if the price elasticities of oil demand are large and that of oil supply is...
Persistent link: https://www.econbiz.de/10011262885
We analyse how, in representative democracies, income distribution influences the stringency of environmental policy and economic growth. Individuals (who differ in abilities) live for two periods, working when young and owning capital when old. Externalities are caused by a polluting factor....
Persistent link: https://www.econbiz.de/10005791379
The fact that according to the celebrated Coase theorem rational parties always try to exploit all gains from trade is usually taken as an argument against the necessity of government intervention through Pigouvian taxation in order to correct externalities. We show that the hold-up problem,...
Persistent link: https://www.econbiz.de/10005661662
. What additional economic cost of mitigation measures will this delay imply? At the same time, the uncertainty surrounding … this uncertainty cost? Is there a hedging strategy that decision makers can adopt to cope with delayed action and uncertain … computing the optimal abatement strategy in the presence of uncertainty about a global stabilisation target (which will be …
Persistent link: https://www.econbiz.de/10005661739
macroeconomic and political uncertainty. Demand for macroeconomic shock insurance was high; 36.7 percent of microentrepreneurs in …Firms in many developing countries cite macroeconomic instability and political uncertainty as major constraints to … their growth. Economic theory suggests uncertainty can cause firms to delay investments until uncertainty is resolved. We …
Persistent link: https://www.econbiz.de/10011084029
Risk theories typically assume individuals make risky choices using probability weights that differ from objective probabilities. Recent theories suggest that probability weights vary depending on which portion of a risky environment is made salient. Using experimental data we show that salience...
Persistent link: https://www.econbiz.de/10009493101
We use a Ricardo-Viner model to study the determinants of the supply of outmigration in developing countries in a model with heterogenous households. We assume that heterogeneity and migration costs prevent households from total migration. Data are calibrated to two archetypal developing...
Persistent link: https://www.econbiz.de/10005666737
We analyse bidding behaviour in auctions when risk-averse buyers bid for a good whose value is risky. We show that when risk in the valuations increases, DARA bidders will reduce their bids by more than the appropriate increase in the risk premium. Ceteris paribus, buyers will be better off...
Persistent link: https://www.econbiz.de/10005114473
Risk theories typically assume individuals make risky choices using probability weights that differ from objective probabilities. Recent theories suggest that probability weights vary depending on which portion of a risky environment is made salient. Using experimental data we show that salience...
Persistent link: https://www.econbiz.de/10011083794
We estimate a time series model of weather shocks on English wheat yields for the early nineteenth century and use it to predict weather effects on yield levels from 1697 to 1871. This reveals that yields in the 1690s were depressed by unusually poor weather; and those in the late 1850s were...
Persistent link: https://www.econbiz.de/10011249371