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dynamic, stochastic general-equilibrium model. It is designed, in particular, for policy evaluation and long-term predictions …
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The optimal social cost of carbon is in general equilibrium proportional to GDP if utility is logarithmic, production is Cobb-Douglas, depreciation in 100% every period, climate damages as fraction of production decline exponentially with the stock of atmospheric carbon, and fossil fuel...
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We study a dynamic stochastic general equilibrium model in which agents are concerned about model uncertainty regarding … from climate change to damages is subject to uncertainty, as opposed to risk, and we use robust control to study efficiency … growth in the presence and in the absence of concerns about model uncertainty, and find that these can lead to substantially …
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