This paper examines the use of inflexible Pigovian taxes/subsidies to correct a stock externality. An optimal control framework is first used to characterize the first-best path for a Pigovian correction that varies continuously. This first-best path is then contrasted with inflexible...

Abstract Currently Unavailable.

Abstract Currently Unavailable.

Choice-theoretic models describe economic behavior of individuals who maximize benefits and minimize costs. Analysis leads to the testable behavior of terrorists, while government policy can raise the costs and reduce the benefits.

Abstract Currently Unavailable.