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Matching as a cure for underprovision of voluntary public good supply: Analysis and an example

Buchholz, Wolfgang; Cornes, Richard; Rübbelke, Dirk - 2011

Matching mechanisms are regarded as an important instrument to bring about Pareto optimal allocations in a public good … interior matching equilibrium, however, emerges only under very special conditions. But we show in this note that corner …

Persistent link: https://www.econbiz.de/10010274970

Potentially harmful international cooperation on global public good provision

Buchholz, Wolfgang; Cornes, Richard; Rübbelke, Dirk - 2012

-called matching approaches. Matching schemes are regarded as providing a promising approach to overcome undersupply of public goods … like climate protection. The functioning of matching mechanisms in a setting with an incomplete agreement, i.e. a contract … by analyzing incomplete matching agreements in the context of international climate protection. We analyse their effect …

Persistent link: https://www.econbiz.de/10010283595

Pareto Improvement through Unilateral Matching of Public Good Contributions: The Role of Commitment

Buchholz, Wolfgang; Cornes, Richard; Peters, Wolfgang; … - 2014

When providing public goods through voluntary contributions, a donor may introduce unilateral matching in order to … reduce underprovision of the public good and thus inefficiency. By itself, however, matching benefits the donor but harms the …

Persistent link: https://www.econbiz.de/10010398655

Equilibrium unemployment and capital intensity under product and labor market imperfections

Kauppi, Heikki; Koskela, Erkki; Stenbacka, Rune - 2004

We study the implications of product and labor market imperfections for equilibrium unemployment under both exogenous and endogenous capital intensity. With endogenous capital intensity, stronger labor market imperfections always increase equilibrium unemployment. The relationship between the...

Persistent link: https://www.econbiz.de/10010261119

Progressive taxation and irreversible investment under uncertainty

Alvarez, Luis H. R.; Koskela, Erkki - 2005

We analyze the impact of progressive taxation on irreversible investment under uncertainty. We show that if tax exemption is lower than sunk cost, higher tax rate will decelerate optimal investment by increasing the optimal investment threshold, while if tax exemption exceeds sunk cost, three...

Persistent link: https://www.econbiz.de/10010261122

Optimal harvesting under resource stock and price uncertainty

Alvarez, Luis H. R.; Koskela, Erkki - 2005

We analyze optimal harvesting policy under stochastic price and stock dynamics. We state a set of weak conditions under which the optimal policy can be characterized by a single exercise threshold and show that the value of optimal harvesting and depletion policies can be expressed as the...

Persistent link: https://www.econbiz.de/10010261127

Does risk aversion accelerate optimal forest rotation under uncertainty?

Alvarez, Luis H. R.; Koskela, Erkki - 2004

We use a Wicksellian single rotation framework to analyze the impact of the intertemporally fluctuating and stochastic mean-reverting interest rate process on the optimal harvesting threshold and thereby the expected length of the rotation period, when forest value is also stochastic following...

Persistent link: https://www.econbiz.de/10010261267

Justifying the Lindahl solution as an outcome of fair cooperation

Buchholz, Wolfgang; Peters, Wolfgang - 2005

The Lindahl equilibrium is mostly motivated by a rather artificial price mechanism. Even though the analogy to a competitive market has been emphasised by Lindahl himself his approach does not directly explain the normative ideas, which are behind this concept. In the present paper we therefore...

Persistent link: https://www.econbiz.de/10010261328

Product market competition, profit sharing and equilibrium unemployment

Koskela, Erkki; Stenbacka, Rune - 2005

We investigate the implications of product market imperfections on profit sharing, wage negotiation and equilibrium unemployment. The optimal profit share, which the firms use as a wage-moderating commitment device, is below the bargaining power of the trade union. Intensified product market...

Persistent link: https://www.econbiz.de/10010261374

Equilibrium unemployment with outsourcing under labour market imperfections

Koskela, Erkki; Stenbacka, Rune - 2007

We study the various consequences of and the incentives for outsourcing. We argue that the wage elasticity of labour demand increases as a function of the share of outsourcing, which is a result consistent with existing empirical research. Furthermore, we show that a production mode with a...

Persistent link: https://www.econbiz.de/10010264053