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consumers' inability to immediately adjust demand. Two puzzles that a standard exhaustible-resource theory cannot explain are …
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We study the optimal contracts (payment and extraction path) implemented by a regulator unable to commit to long term contracts that delegates the extraction of a nonrenewable resource to a firm. The regulator wishes to maximize the tax revenue and does not know the firm's efficiency which is...
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life-time wealth and then the optimal consumption path. The derived model captures precautionary saving, which is dependent …
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derive the optimal savings distortions necessary for constrained optimality. Our recursive preferences are homogeneous and …
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