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We show that, in a model without commitment to future policies, geoengineering breakthroughs can have adverse environmental and welfare effects because they change the (equilibrium) carbon taxes. In our model, energy producers emit carbon, which creates a negative environmental externality, and...
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Dynamic capitalist economies are characterised by relentless innovation and novelty and hence exhibit an indeterminacy … form of 'narrative economics' and a theory of fictional (rather than rational) expectations. When expectations cannot be … Narrative und kontingenter Vorstellungen eine neue Form "narrativer Wirtschaftswissenschaft" und einer Theorie fiktionaler …
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The objective of our paper is to study R&D investments and pricing behavior in an environment with fundamental uncertainty. We designed a multi-period experiment in which each period consisted of two stages, an R&D phase and a pricing stage. Participants in the experiment had almost no...
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This contribution argues that uncertainty is integrated into the modern economic systems; however its autochthonously increasing feature is puzzling and should be addressed in a more dedicated way. Behind the curtain of increasing uncertainty, we purport to demonstrate that at least the...
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