Natural ecosystems provide a variety of benefits to society, known as “ecosystem services.” Fundamental to the provision of ecosystem services in a region is its underlying biodiversity, i.e., the wealth and variety of plants, animals, and microorganisms. Because the benefits from ecosystem...

The Multiplicative Ergodic Theorem provides a novel general methodology to analyze rational expectations models with stochastically varying coefficients. The approach is applied for the first time to economics and analyzes the canonical New Keynesian model with a Taylor rule which switches...

While rational expectations models with time-varying (random) coefficients have gained some esteem, the understanding of their dynamic properties is still in its infancy. The paper adapts results from the theory of random dynamical systems to solve and analyze the stability of rational...

In the criminal career literature, the individual-level age-crime relationship is commonly modelled using generalized linear mixed models, where between-individual heterogeneity is then handled through specifying random effect(s) with some distribution. It is common to specify either a normal or...

Adapting to climate change will not only require responding to the physical effects of global warming, but will also require adapting the way we conceptualize, measure, and manage risks. Climate change is creating new risks, altering the risks we already face, and also, importantly, impacting...

This paper analyzes the economic impacts of climate change-induced adjustments on the performance of the Tanzanian economy, using a countrywide CGE (computable general equilibrium) model. The general equilibrium framework enables comparison of the effects of climate change to the overall growth...

Recent events in the financial and insurance markets, as well as the looming challenges of a globally changing climate point to the need to re-think the ways in which we measure and manage catastrophic and dependent risks. Management can only be as good as our measurement tools. To that end,...

In recent years a growing number of studies have been discussing the relationship between air pollution and human health. The evidence in the literature for adverse health effects of several pol-lutants seems convincing. In our article we are concerned with to which extent these health effects...

In the US tradable SO2 permit scheme 97.2 per cent of the permits are grandfathered annually to electricity utilities. The remaining 2.8 per cent are withheld and offered for sale at the Environmental Protection Agency (EPA) auction. Also, the electricity utilities may tender permits for sale...

Negotiating an international tradable quota treaty between industrialised and developing countries is complicated by uncertain marginal abatement costs and non-uniform quota prices. An initial quota allocation that implies zero expected net cost to developing countries will typically be...