National authorities are presently not willing to install a supranational authority vested with the competencies required to internalize global environmental externalities. Therefore we adopt a dynamic framework of two economies (i.e. Europe and rest of world) and analyze their strategic...

We provide new characterizations of the equal surplus division value and the equal division value as well as of the class of their convex mixtures. This way, the difference between the Shapley value, the equal division value, and the equal surplus division value is pinpointed to one axiom....

I illustrate that the welfare improvement property of the Melitz model is due to the shape of the aggregate labor demand curve, which slopes upwards. By slightly changing some assumptions in the model, this curve may have a negative slope. In this case, increases in aggregate productivity result...