This paper offers an explanation for the rationality of why successful businesses sometimes maintain excess demand. The explanation is motivated from the signaling role of excess demand for firms. Considering a monopolistic market for a good whose quality is not known to the consumers, a firm...

The effectiveness of pre-play communication in achieving efficient outcomes has long been a subject of controversy. In some environments, cheap talk may help to achieve coordination. However, Aumann conjectures that, in a variant of the Stag Hunt game, a signal for efficient play is not...

This paper discusses three key elements of stochastic growth in the Schumpeterian dynamics. These elements comprise the new entry of firms in an industry, the displacement of the old technology by the new and the nonlinear impact of learning by doing on the growth of innovating firms. Each of...

Most existing models of fiscal competition between states within federations or regional unions share at least two common features. First, they focus on inter-jurisdictional competition in but one policy instrument, for example, taxes, public goods or environmental quality. The second is that...

This paper measures the economic impact of climate change on US agricultural land. We replicate the previous literature's implementation of the hedonic approach and find that it produces estimates of the effect of climate change that are very sensitive to decisions about the appropriate control...

In the Dutch Postcode Lottery a postal code (19 households on average) is randomly selected weekly, and prizes--consisting of cash and a new BMW--are awarded to lottery participants living in that postal code. On average, this generates a temporary, unexpected income shock equal to about eight...

This paper reviews the impact of the literature in depletable resources and energy economics over the period 1973-98, particularly the period of publication of the Journal of Environmental Economics and Management, 1974-98. A discussion of prominent policy issues in this arena is provided, along...

When academic journals were distributed only as paper editions, the obvious way for scholars to share a journal was to use the copy found on the shelves of their own university library. With the arrival of electronic access, the logistics of journal-sharing has changed radically. Physical...

During 2002-2004 a voluntary, profit sharing harvesters' co-operative was allowed to operate in the Chignik Salmon fishery in Alaska. Regulators split the fishery's total allowable catch between the co-op and independent harvesters. Our economic model predicts that the co-op would centrally...