In this paper, we analyze the consequences of mass and energy conservation and the second law of thermodynamics foreconomic activity. In contrast to former studies, we deduce our results formally from a general model of production andconsumption. We show that in a static setting for economies...

We consider an abstract setting of the differential r&d game, where participating firms are allowed for strategic behavior. We assume the information asymmetry across those firms and the government, which seeks to support newer technologies in a socially optimal manner. We develop a general...

We study the optimal adaptation to extreme climate events by the central government in a setup where events are dynamically uncertain and the government does not know the true probabilities of events. We analyze different policy decision rules minimizing expected welfare losses for sites with...