We present a theory linking political and social trust to explain trust erosion in modern societies. Individuals …

-consistent policy rules that implement the stochastic first best as long as a future market exists. We apply our theory to carbon …

In this paper, we study regulation of externalities involving many small-scale polluters, where the damages from …

externalities via the interest rate. Conditional on differences in the processes determining household earnings for distinct groups … in the population, these savings externalities may contribute to inequality. Working with an open economy heterogenous … earnings processes of British households with university and non-university educated heads entail savings externalities that …

-tier (horizontal) and between-tiers (vertical and diagonal) fiscal externalities. Estimation of an unrestricted income tax reaction …

if intra-group negative externalities are sufficiently (but not too) strong with respect to positive inter …-group externalities …

-best outcomes. We also show there exists a range of subsidy rates that are welfare-enhancing when greenhouse gas externalities are …