This article analyzes the consequences of environmental tax policies when the government imposes a constraint on stabilizing public debt. A public sector of pollution abatement is financed by taxation and by issuing public debt. Considering a simple overlapping-generations model, the tax reform...

This paper presents a general-equilibrium model of environmental tax reform that introduces a health status depending on environmental quality and medical consumption, and tax deductions for medical expenditure. It distinguishes between two types of health effect: environmentally and medically...

This article analyzes the consequences of environmental tax policies when the government imposes a constraint on stabilizing public debt. A public sector of pollution abatement is financed by taxation and by issuing public debt. Considering a simple overlapping-generations model, the tax reform...

This paper examines the importance of induced technological change in considering the efficiency costs of environmental policy. In particular, in modeling an endogenous formation of energy-saving technology through a variety of intermediates, the paper studies the welfare effects of...

We construct a research and development (R&D) based endogenous growth model with exhaustible resources and investigate whether protection of intellectual property rights (IPR) can sustain perpetual growth. We show that relatively weak IPR protection is sufficient to sustain perpetual growth when...

In this note, we consider the effect on equity premiums of a representative household’s subjective expectations during disasters. In particular, we focus on the effect of doubt during disasters. We derive analytical solutions of equity premiums in the model of power utility function and...

Some studies find that real equity prices in economies damaged during World War II tended to rise sharply at the beginning of actual damage taking place during the war. This paper introduces an empirically plausible degree of persistence from the impact of World War II and demonstrates that...