Economists have long noted that improving energy e fficiency could lead to a rebound eff ect, reducing or possibly even eliminating the energy savings from the effi ciency improvement. Yet there are important nuances in the microeconomic theory of the rebound eff ect that have not been explored....

We show how the prospect of disputes over firms' revenue reports promotes debt financing over equity. This is demonstrated in a costly state verification model with a risk averse entrepreneur. The prospect of disputes encourages incentive contracts that limit penalties and avoid stochastic...

This Second Edition updates the companion workbook to match the new edition of the textbook Principles of Microeconomics. Each chapter features a wide variety of exercises, ranging from basic multiple-choice questions to challenging mathematical problems and case study scenarios. The textbook...