What drives extreme economic events? Motivated by recent theory, and events in US subprime markets, we begin to open the black box of extremes. Specifically, we extend standard economic analysis of extreme risk, allowing for dynamics and endogeneity. We explain how endogenous extremes may arise...

Inhabitants of houses near Amsterdam Airport are complaining of noise nuisance, caused by aircraft traffic. The usual assumption is that the effect of the externality will be perfectly reflected by house price differentials. This is based on the implicit assumption that there is a...

In the face of uncertainty, ecosystems can provide natural insurance to risk averse users of ecosystem services. We employ a conceptual ecological-economic model to analyze the allocation of (endogenous) risk and ecosystem quality by risk averse ecosystem managers who have access to financial...

In this paper we study political-economy determinants of the differentiation of environmental taxes between sectors. Using a common-agency model, we provide predictions on tax differentiation which are then tested using data from the German Ecological Tax Reform. As the reform is revenue neutral...

This paper provides welfare theoretic foundations for risk-adjusted capital flow regulations based on a standard class of macroeconomic models of financial crises that exhibit financial amplification dynamics. We show that during crisis episodes when such amplification effects are triggered,...

A zsúfoltság világszerte számos nagy repülőtéren jelen van. A zsúfoltság késlekedést, kellemetlenséget és költséget okoz, és az ebből származó hatékonyságveszteség problémáját kezelni kell. Számos módszer közül ez a tanulmány a repülőtéri zsúfoltság az...

A szerző arra a kérdésre keresi a választ, hogyan alakulhat ki látványos szakadék az egyéni cselekvések iránya és azok együttes hatása között. A szándékok és tettek hatását felülírhatja a társadalmi gazdasági tényezőkből adódó tehetetlenség: a kritikus tömeg...

The influence of peers could play an important role in the take up of social programs. However, estimating peer effects has proven challenging given the problems of reflection, correlated unobservables, and endogenous group membership. We overcome these identification issues in the context of...

A central question in climate policy is whether early investments in low-carbon technologies are a useful first step towards a more effective climate agreement in the future. We introduce a climate cooperation model with endogenous R&D investments where countries protect their international...