We formulate an optimal control capital accumulation model with a Leontief-type production function and an exogenously given time-lag between investment and the accumulation of the capital stock, to analyze the qualitative and quantitative influence of time-lags on the system dynamics. As known...

We analyse a principal-agent relationship in the context of international climate policy. Principals in two countries first decide whether to merge domestic emission permit markets to an international market, then delegate the domestic permit supply to an agent. We find that principals select...

In this paper I extend the well known result that a hyperbolically discounting agent postpones costs into the future. If society has hyperbolic intertemporal preferences, it may be optimal from an ex ante point of view to postpone structural change from a polluting to a non polluting production...