In markets where production has adverse externalities, policy makers may wish to increase welfare by imposing a cap on … market entries. In this paper, we examine the implications that the cap has on the firms' investment equilibrium policy and … consideration of the option value triggers investment at price above the social marginal cost of production, then it is optimal to …

only costs of risk selection, but can also play an important role in loss-prevention. -- externalities ; insurance monopoly … return to an investment in loss-prevention is greater than the private return. From a perspective of social welfare, the … market allocation is not optimal and leads to under-investment in prevention allround. This article considers consumer …

quantity-based policies (e.g., tradable permits) for controlling stock externalities. Applied to the problem of greenhouse … in such cases. For negative externalities, we find that less stringent controls and price instruments are both associated …

The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this … paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic investment under … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis …

The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this … paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic investment under … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis …

The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this … paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic investment under … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis …

important driver of macroeconomic investment. As an innovation, this paper derives the exact shape of the "hysteretic" impact of … changes in the interest rate on macroeconomic investment under the scenarios of certainty and uncertainty. We capture the … direct interest rate-hysteresis effects on investment and the capital stock and, explicitly, stochastic changes of the …