We explore the role of public subsidies in mitigating the transition risk associated with a climate-neutral objective by 2060. We develop and estimate an environmental dynamic stochastic general equilibrium model for the world economy featuring an endogenous market structure for green products....

I derive a social planner's optimal information design in an environment with quasi-hyperbolic discounting consumers without commitment. Consumption induces instantaneous utility, but unknown delayed cost. Consumers may or may not acquire additional costless information on the cost parameter....

The growing popularity of national efforts to promote eco-labeling raises important questions. In particular, developing countries fear that the eco-label can deliberately impose the environmental concern of (high income) importing countries on their production methods. Yet, empirical studies of...

We apply a heterogenous coefficient spatial autoregressive panel model from Aquaro, Bailey and Pesaran (2015) to explore competition/cooperation by Berlin fueling stations in setting prices for diesel and E5 fuel. Unlike the maximum likelihood estimation method set forth by Aquaro, Bailey and...

The paper solves the optimal sampling problem of a decision-maker that wants to predict a target variable. We prove the existence of complementarities between the sample size and the number of explanatory variables in a data set. We show that the optimal dimensions of the data set reflect the...

Mere observation of others' choices can be informative about product quality. This paper develops an individual-level dynamic model of observational learning, and applies it to a novel data set from the U.S. kidney market where transplant candidates on a waiting list sequentially decide whether...