The deterministic extended-path (EP) method for solving dynamic stochastic optimisation problems approximates conditional expectations instead of approximating a model's complex non-linear dynamics. For a benchmark real business cycle model we show that this straightforward approach provides...

In this paper, the authors examine the economics of crime deterrence from an evolutionary perspective. A bimatrix game is used to model the interaction between populations of property owners and (potential) criminals, given exogenous levels of public policing and criminal sanctions. A crucial...

We develop a simple model of interregional tax competition to explore how the balance between common and region-specific aspects of a project's value affects the magnitudes of tax breaks offered by governments, when the firm possesses private information on the region-specific values. We examine...