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conflict is modeled as a Bayesian game on which each player's valuation is drawn independently from arbitrary distributions. We … predictable movements in the conflict's dissipation. We focus on arbitrary contest success functions and arbitrary independent …
Persistent link: https://www.econbiz.de/10013136257
What do climate change, global financial crises, pandemics, and fragility and conflict have in common? They are all …
Persistent link: https://www.econbiz.de/10013043705
We build a model of secession crises where voters may wish to accommodate the minority to prevent secession. We show the existence of a majority voting equilibrium with a government's type biased in favor of the minority. We propose a measure of secession risk and perform the comparative static...
Persistent link: https://www.econbiz.de/10010274771
Initiating a conflict is an investment in social, political or economic change. The decision to attack is sequential in … disregarded in conflict theory. In this dynamic model of decision making we focus on the time dimension of an escalating conflict … oppressive government actions may lead to an earlier outbreak of conflict. However, even if latent conflicts are not immediately …
Persistent link: https://www.econbiz.de/10009664935
Persistent link: https://www.econbiz.de/10012309777
The impact of uncertainty on firms' investment outlays is subject to an ongoing debate. Theory identifies several channels. Irreversibility, financing constraints and risk aversion make a negative relationship between uncertainty and investment likely. On the other hand, the ability of firms to...
Persistent link: https://www.econbiz.de/10010295693
This paper addresses optimal taxation, when the relationship between consumption and environmental damage is uncertain and treated as a random variable by policy makers. The main purpose is to analyze how additional uncertainty about this relationship affects the optimal unit tax on the...
Persistent link: https://www.econbiz.de/10010321768
This paper estimates the impact on the US economy of four types of uncertainty about (i) government spending, (ii) tax changes, (iii) public debt sustainability and (iv) monetary policy. Following a one standard deviation shock, uncertainty about debt sustainability has the largest and most...
Persistent link: https://www.econbiz.de/10010368163
The behaviour of future policy-makers substantially influences future greenhouse gas emissions. Uncertainty about the motives of future policy-makers may thus strongly influence the climate policy strategies of current policy-makers. Analytical and numerical analyses in this paper confirm this...
Persistent link: https://www.econbiz.de/10011608362
High income risk is part of life in developing countries. Climatic risks, economic fluctuations, but also a large number of individual-specific shocks make these households vulnerable to serious hardship. For example, details are given on the various shocks and events causing serious hardship to...
Persistent link: https://www.econbiz.de/10010279294