de Frutos Cachorro, Julia; Erdlenbruch, Katrin; … - In: Journal of Economic Dynamics and Control 40 (2014) C, pp. 134-153
We consider an exogenous and reversible shock to a groundwater resource, namely a decrease in the recharge rate of the aquifer. We compare optimal extraction paths and the social costs of optimal adaptation in two cases: under certainty, i.e. when the date of occurrence of the shock is known,...