A no-arbitrage rule of consumption and a golden rule of capital accumulation are derived under the assumptions that the satisfaction from consumption is spoiled by environmental degradation caused by industrialisation but moderated by cleaning up and greening operations.

An expected lifetime-utility maximizing diet of junk and health food is analyzed. The stationary junk-food consumption level is equal to the ratio of the recovery capacity of a perfectly healthy person to the sensitivity of her health to junk food. The greater the difference between the relative...

This paper develops a lean-against-the-wind rule for setting low-skill immigration quota. The construction of this rule takes into account the factors governing the supply of and demand for low-skill immigrants, illegal immigration, border enforcement and the host-country's level of unemployment.

The optimal consumption growth rate for a group in a strictly political federation in a dual-population land is lower than that under partition if the group is wealthier and has a lower population growth rate than its counterpart. Even in such circumstances the group may economically benefit...

Sensitivity of sincere social communication to economic status disparity is incorporated into the construction of sincere social-capital index. The consideration of this index leads to the depiction of the happiness-wealth relationship as an inverted U-shaped curve that peaks at a larger than...

This paper highlights the role of hatred and its evolution in determining the course of conflicts between nations following their signing of an agreement for truce. It analytically demonstrates that weak inertia, diminishing memory of hatred and a low propensity to reciprocate aversion are...

Due to the open-access nature of the environment we consider an ad hoc adjustment of people’s footprints to the quality of the environment. The adjustment is due to concerns, but hindered by skepticism about announced changes in the state of the environment. Changes in the quality of the...

A socially desirable number of royalties-paying users of state-owned broadcasting spectrum is derived within an optimal control framework that allows free entry and exit. The analysis takes into account the trade-off between the benefits from higher variety and royalties’ revenues and the...

A socially desirable number of royalties-paying users of a state-owned broadcasting spectrum is derived within an optimal control framework where the adjustment of the number of users to above-normal profits is adversely affected by sunk costs. The optimal control takes into account the tradeoff...

This paper analyzes the qualitative and quantitative deviations of rational consumers from their physiologically optimal diets with a distinction between a nutritionally and digestively superior food and a taste and price superior food. The inclusion of a cause-and-effect relationships of these...