International investment agreements in bilateral treaties or free trade agreements allow investors to bring compensation claims when their investments are hurt by new regulations addressing environmental or other social concerns. Compensation rules such as expropriation clauses in international...

This note derives the dynamic programming equation (DPE) to a differentiable Markov Perfect equilibrium in a problem with non-constant discounting and general functional forms. Beginning with a discrete stage model and taking the limit as the length of the stage goes to 0 leads to the DPE...

This authoritative Handbook provides a thorough account and analysis of the important issues relating to the globalization of the international economy.

A dynamic model of capital structure for the noncoiporate farm is developed and analyzed. In this model. the probability of bankruptcy increases as the farmer's debt/asset ratio increases. Funds invested outside agriculture earn a risldess rate of return. The farmer/proprietor is also able to...

Optimal agricultural distortions are calculated, taking as given distortions in the nonagricultural sector. The calculations use a general equilibrium model and assume that the sole criterion is economic efficiency. For most agricultural commodities, existing distortions should be decreased; for...

Polley making involves dynamics, uncertainty, and strategy, which (although they overlap) can be regarded as separate aspects of the decision maker's problem. Analyzing equilibrium pohc1es (when all considerations are present) and determining how the equilibrium is altered (when one or more...

A two‐sector overlapping generations model illuminates the intergenerational effects of a tax that protects an environmental stock. A traded asset capitalizes the economic returns to future tax‐induced environmental improvements, benefiting the current asset owners, the old generation....

Spatial perspective implies a hyperbolic spatial discount rate. To the extent that discounting with respect to space and to time are analogous, this result provides further evidence that hyperbolic discounting is a good description of how we view the world.

We modify a canonical participation game used to study International Environmental Agreements (IEA), considering both mixed and pure strategies at the participation stage, and including a prior cost-reducing investment stage. The use of mixed strategies at the participation stage reverses a...

We examine the effect of endogenous and exogenous risk on the equilibrium (expected) membership of an International Environmental Agreement when countries are risk averse. Endogenous risk arises when countries use mixed rather than pure strategies at the participation game, and exogenous risk...