This paper provides a theoretical framework to study the behavioral and welfare effects of forest conservation, which leads to a binding harvesting constraint for landowners. The economy is modeled as a three-stage game by the interaction of the government’s conservation policy, with...

This paper studies optimal forest policies in an overlapping generations forest economy with one-sided altruism, where timber and monetary bequests can be made across generations and forest amenities are a public good. We extend the existing economics literature by demonstrating that timber...

This paper devises an e-competitiveness index attempting to measure the ability of a nation to exploit information and communication technology (ICT) to the fullest. Results of the analysis show that Finland is highly specialized in ICT provision, it has good premises to exploit ICT to the...

A company’s intellectual capital consists of a set of various non-physical sources of value, such as employee competencies, stakeholder relationships and patents. This paper examines the relationship between intellectual capital and productivity at company-level. It is based on a conceptual...

The current literature on optimal forest rotation makes the unrealistic assumption of constant interest rate though harvesting decisions of forest stands are typically subject to relatively long time horizons. We apply the single rotation framework to extend the existing studies to cover the...

The current extensive literature on irreversible investment decisions usually makes the assumption of constant interest rate. In this paper we study the impact of interest rate and revenue variability on the decision to carry out an irreversible investment project. Given the generality of the...

The paper analyses the impacts of occupational choice and entrepreneurial effort on the structure of wage, profit and capital taxation. Entrepreneurial effort is unobservable and therefore not tax-deductible. The optimal profit tax is less than unity even if individual entrepreneurial effort is...

The paper addresses the classical question how to lead the economy from a recession back to full employment in an open economy. In a recession caused by an adverse demand shock, optimal policies crucially depend on whether the income multiplier related to a policy is bigger than unity. This...

Central concerns of research and innovation policies under uncertainty and systemic complexity are market and systemic failures, i.e. both market corrections as well as co-ordination and coherence are essential elements of policy making. Therefore, policy making cannot be based on the notions of...

This paper studies a revenue-neutral green tax reform that substitutes energy for wage taxes in an open economy with unemployment. As long as the labour tax rate exceeds the energy tax rate, such a reform will increase employment, reduce the domestic firms' unit cost of production and hence...