We introduce the concept of a strategic dictator and use it to analyze patterns of power in two-pperson games that arise naturally in bargaining, arbitration, and incentive problems, a strategic dictator is an agent who has the power to ensure that at Nash equilibrium outcome is his or her...

It has been said that insurance is the last of the financial services to accept radical change (Denney [1995-1996]). Yet there has been a fundamental shift in the geographic location and in the organization of the reinsurance industry in the last six years (Chichilnisky [1996b]). Global...

New risks seem to be an unavoidable in a period of rapid change. The last few decades have brought us the risks of global warming, nuclear meltdown, ozone depletion, failure of satellite launcher rockets, collision of supertankers, AIDS and Ebola. A key feature of a new risk, as opposed to an...

In international circles. the concem of the day is with the state of the world economy. There is a general appreciation ofthe severity ofthe problem, but no widespread agreement about either diagnosis or solutions. We shall focus here on a particular set of topics that have emerged as major...

The paper studies a two-region economy, with two sectors and three factors of production: oil, capital and labor. The South exports oil in exchange for industrial goods from the North. There is a net capital inflow to the South. This equals the difference between its export revenues and import...

An economy faces an unknown individual risk, such as the health effects of a recently discovered environmental hazard. Opinions may be widely different about the distribution of risks across the population. We study financial markets that suffice to reach efficient allocations in this situation....

We study paths which involve optimal use of a renewable resource under several alternative definitions of optimality, including the discounted utilitarian, Chichilnisky's, the Rawlsian and the green golden rule. Initially we consider an economy where the only good is the resource: subsequently,...