The paper consists of a summary of the main sources of uncertainty about climate change, and a discussion of the major implications for economic analysis and the formulation of climate policy. Uncertainty typically implies that the optimal policy is more risk-averse than otherwise, and therefore...

The stabilization of global climate presents one of the most complex problems in public good provision the world has faced. Continuation of ‘business as usual’ policies, leading to warming of more than 2 degrees over the next year, will produce significant damage to agricultural systems and...

The main points of this submission are: 1. The most important distortions of agricultural trade practised by the US are unaffected by the FTA and are, in effect, endorsed by Australia’s signature to the agreement. 2. Considered in isolation, there is little to commend the proposed agreement....

A cost-based approach to asset-pricing equilibrium relationships is developed. A cost function induces a stochastic discount factor (pricing kernel) that is a function of random output, prices, and capital stockt. By eliminating opportunities for arbitrage between financial markets and the...

To mitigate environmental damage from the over allocation of water property rights to irrigation in Australia’s Murray-Darling Basin, the Federal Government has introduced a Buy-Back policy. However, the conjunctive nature of water resources in the Murray- Darling Basin is highly variable....

We develop a model of games with awareness that allows for differential levels of awareness. We show that, for the standard modal logical interpretations of belief and awareness, a player cannot believe there exist propositions of which he is unaware. Nevertheless, we argue that a boundedly...

The purpose of this article is to provide a framework for discussion of the current policy issues surrounding management of the Great Artesian Basin, with reference to the historical development of existing legislation and institutions. Of particular interest is the applicability of lessons...

Among the many environmental problems facing Australia, the problems of managing the Murray-Darling Basin and of responding to climate change are notable for their complexity, intractability and for the wide range of people and regions affected. Consideration of policy successes and failures in...

The aim of this paper is to restate the case for social democracy and to propose a policy agenda in response to the global financial crisis. The crisis is not a temporary aberration, to be followed by a return to the ‘normality’ of the late 20th century, dominated by the ideology of economic...

We focus on aspects of differential awareness that give rise to contractual disputes. Parties to a contract are boundedly rational as the state space available to them is coarser than the complete state space. Hence, they may disagree as to which state of the world has occurred, and therefore as...