This paper analyzes the relationship between money and labor supply, and derives money's optimal rate of return when production functions experience stochastic shocks. Increases in money's return increase both the deterministic component and variance of labor supply. Moreover, money's optimal...

We calculate the social cost of carbon (SCC) under stochastic climate volatility resulting from uncertainty about future climate risk regimes where weather extremes are becoming more frequent and intense. Using a stochastic dynamic integrated climate-economy model where representative agents are...