Economic evaluation of projects involving changes in mortality risk conventionally assumesthat lives are statistical, i.e., that risks and policy-induced changes in risk are small andsimilar among a population. In reality, baseline mortality risks and policy-induced changes inrisk often differ...

We analyze the design of optimal environmental policy when environmentaldamage is uncertain and investments in abatement technologies are irreversible. Weassume that the investment in the new abatement technology can be used for twoperiods and that the true extent of environmental damage will...

We are considering for examination an Irreversible Investment under Uncertainty, subsidizedby the government. If the government announces the termination of a form of subsidization,investors may decide to realize their investment in order to obtain the subsidy. These investors mighthave...

The extinction of genetic resources as a consequence of land development, especially in ‘biodiversity hot spots’like rain forests in South America or South East Asia, is becoming a serious problem - not only for local communitiesbut also for international firms in the pharmaceutical...

We discuss political economy mechanisms which can explain the resource curse,in which an increase in the size of resource rents causes a decrease in the economy’stotal value added. We identify a number of channels through which resource rentswill alter the incentives of a political leader....

Die deutsche Arbeitsmarktpolitik ist im Zuge der Hartz-Reformen grundsätzlich neustrukturiert und systematisch evaluiert worden. Die vorliegenden Evaluationsberichte derersten drei Hartz-Gesetze belegen nun vielfach, welche Instrumente der aktivenArbeitsmarktpolitik sich durch ihre Wirksamkeit...

The traditional approach to measuring allocative efficiency is based on input prices, which are rarely known at the firm level. This paper proposes a new approach to measure allocative efficiency which is based on the output-oriented distance to the frontier in a profit technical efficiency...

This paper studies the implications of cross-border financial integration for financialstability when banks’ loan portfolios adjust endogenously. Banks can be subjectto sectoral and aggregate domestic shocks. After integration they can share theserisks in a complete interbank market. When...

We investigate whether Swedish Environmental Protection Agency (EPA) administrator recommendations regarding improvements in environmental quality differ from citizen preferences. The scope and significance of the possible difference are assessed by conducting identical choice experiments on a...