This paper investigates how institutional constraints discipline the behavior of discretionary governments subject to an expenditure bias. The focus is on constraints implemented in actual economies: monetary policy targets, limits on the deficit and debt ceilings. For a variety of aggregate...

Increasing the realism with respect to the representation of actors, decision-making, and institutions is critical to better understand the transition towards a low-carbon sustainable society since actors, decision-making, and institutions are the defining elements of transition pathways. In...

We investigate how various institutional settings affect a network provider’s incentives to invest in infrastructure quality. Under reasonable assumptions on demand, investment incentives turn out to be smaller under vertical separation than under vertical integration, though we also provide...