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Why uncertainty matters: Discounting under intertemporal risk aversion and ambiguity
Traeger, Christian - 2012
contribution, the paper extends the smooth ambiguity model by providing a threefold disentanglement between, risk aversion …, ambiguity aversion, and the propensity to smooth consumption over time. …
Persistent link: https://www.econbiz.de/10010280817
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Climate Change and Migration: A Dynamic Model
Mason, Charles F. - 2016
In this paper I explore a model where citizens of a country vulnerable to damages from climate change may migrate to a second country, from which a steady stream of greenhouse gases occur. If this migration imposes costs on the emitting country, then migration induces a sort of pseudo carbon...
Persistent link: https://www.econbiz.de/10011555590
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Sinking Land: Optimal Control of Subsidence
Sen, Suphi; Verhoeven, Dewy; Weikard, Hans-Peter - 2023
Land subsidence threatens the living conditions of roughly 1.2 billion people worldwide in deltaic regions characterized by soft top soil. Economic activity in deltaic regions requires lowering the groundwater levels to keep the land sufficiently dry to maintain productivity, which, however,...
Persistent link: https://www.econbiz.de/10014469856
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Experimentation in Two-Sided Markets
Peitz, Martin; Rady, Sven; Trepper, Piers - 2015
We study optimal experimentation by a monopolistic platform in a two-sided market. The platform provider is uncertain about the strength of the externality each side is exerting on the other. Setting participation fees on both sides, it gradually learns about these externalities by observing...
Persistent link: https://www.econbiz.de/10010531813
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Harvesting a Remote Renewable Resource
Upmann, Thorsten; Behringer, Stefan - 2017
In standard models of spatial harvesting, the resource is distributed over the complete domain and the agent is able to control the harvesting activity everywhere all the time. In some cases though, it is more realistic to assume that the resource is located at a single point in space and that...
Persistent link: https://www.econbiz.de/10011777589
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Optimal Fiscal Policy
Lukkezen, Jasper; Teulings, Coenraad N. - 2013
This paper derives and estimates rules for fiscal policy that prescribe the optimal response to changes in unemployment and debt. We combine the reduced-form model of the economy from a linear VAR with a non-linear welfare function and obtain analytic solutions for optimal policy. The variables...
Persistent link: https://www.econbiz.de/10010312862
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Announcing is bad, delaying is worse: Another pitfall in well-intended climate policy
Jus, Darko; Meier, Volker - 2012
It is frequently observed that the implementation of green policies is delayed compared to the initial announcement. Considering a setting with a representative monopolist extracting a non-renewable resource, we demonstrate that announcing a green policy, but then delaying its implementation, is...
Persistent link: https://www.econbiz.de/10010283580
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The value of a statistical life under ambiguity aversion
Treich, Nicolas - 2008
We show that ambiguity aversion increases the value of a statistical life as soon as the marginal utility of wealth is … higher if alive than dead. The intuition is that ambiguity aversion has a similar effect as an increase in the perceived … baseline mortality risk, and thus operates as the "dead anyway" effect. We suggest, however, that ambiguity aversion should …
Persistent link: https://www.econbiz.de/10010264356
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Impatience and uncertainty: Experimental decisions predict adolescents' field behavior
Sutter, Matthias; Kocher, Martin G.; Rützler, Daniela; … - 2011
We study risk attitudes, ambiguity attitudes, and time preferences of 661 children and adolescents, aged ten to … mass index, are less likely to save money and show worse conduct at school. Experimental measures for risk and ambiguity …
Persistent link: https://www.econbiz.de/10010278876
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Fact-Checking Politicians
Mattozzi, Andrea; Nocito, Samuel; Sobbrio, Francesco - 2022
-checking may also increase the ambiguity of politicians' statements. …
Persistent link: https://www.econbiz.de/10014290032