bargaining leads to a steady state with lower pollution stock and higher income compared to the steady state without a contract … improving mitigation is no longer possible and the economy converges to a steady state with high pollution stock and low income …

consequences. Five main issues are addressed. First, I identify the key factors that make both European-style “welfare state” and … institutions that can be durably sustained, showing in particular how skill-biased technical change may cause the welfare state to …