This paper is providing an initial empirical application of Lee and Pitt's approach to the problem of corner solutions with panel data. This approach deals with corner solutions in a manner consistent with behavioral theory. Furthermore it allows the use of flexible form cost functions and...

This paper examines if an energy price shock should be compensated by a reduction in energy taxes to mitigate its impact on consumer prices. Such an adjustment is often debated and advocated for redistributive reasons. Our investigation is based on a model that characterizes second-best optimal...

This paper examines the link between pollution and income. It shows how income inequality affects environmental policies and therefore pollution. The Environmental Kuznets Curve (EKC) hypothesis proposes that there is an inverted U-shape relation between environmental degradation and income per...