This paper deals with the existence of anonymous mechanisms to realize the Lindahl correspondence. We consider, in turn, constant and decreasing returns to scale technologies for producing public goods. In each case, we provide a continuous (but not smooth) and weakly balanced mechanism, which...

The idea of regulating pollutions by means of tradable emission permits on a competitive market was developed for the first time by Dales in 1968. The question of the citizens’ participation on these markets received little attention in the economic literature. However, people are allowed to...

[fre] La politique du climat nécessite une décision en situation d'incertitude radicale. Ce document illustre ce débat en supposant l'existence d'un risque de catastrophe irréversible au-delà d'un seuil critique de pollution connu. Sans apprentissage, la décision optimale consiste à...

This note provides a simple characterization of the optimal extraction of a non-renewable resource. The proposed formula determines the solution in its feedback form. It is shown to hold for a large class of models, as long as the utility is stock-independent.

We construct an economic mechanism to realize in Nash equilibrium an optimal consumption time path of a natural resource. For exposition convenience, the analysis is conducted within the model initiated by Levhari and Mirman (1980). This framework allows us to explicitly calculate the...

In this note, we discuss the existence of anonymous and balanced mechanisms to implement the Lindahl allocations. We obtain an impossibility result for the class of mechanisms defining an homeomorphism between the message space and the allocation space.

This paper presents a new economic mechanism, such that the associated game form implements Lindahl equilibria as Nash equilibria. Each player sends a 2-dimensional message, in order to tell his marginal propensity to pay and his demand for the public good. At a Nash equilibrium, the players...

This paper considers the issue of a catastrophic environmental collapse and the way one should deal with it. In the model used here, one faces the choice to cross or not a critical threshold of pollution, which consequences are a definitive destruction of some environmental characteristic. The...

This note provides an additional argument in favour of the use of a negligence rule in tort law. When the probability of suit varies among injurers and is not observable by the judge, the judge will fail to implement the socially optimal level of care using a strict liability rule (for this...