A numerical example employing a class of increasing absolute risk averse utility functions, the incomplete Euler gamma functions, proves that the slope of indifference curves in the $\mu,\sigma$)-space can be locally decreasing in $\sigma$ (for given $\mu$). So far, this possibility has been...

We study the market allocation in an economy where material is used for producing a consumption good, then recycled and finally landfilled, and where a recycling firm has market power. The material content constitutes an aspect of green product design and affects the recycling costs. Although...

This paper provides a new foundation of soft drink taxation. We abstract from externalities and internalities previously used to justify such taxation and, instead, emphasize that neither explicit nor implicit markets and prices for sugar content can be expected to emerge. Hence, in the absence...

Die gesetzliche Krankenversicherung, die soziale Renten- und die Arbeitslosenversicherung bewirken, daß Einkommen und Vermögen umverteilt werden. Demzufolge können soziale Versicherungen im weitesten Sinne als staatliche Umverteilung von Einkommen und Vermögen aufgefaßt werden. Thomas...

Within a general equilibrium model, this paper identifies a novel animal welfare externality that occurs if the private animal friendliness in a market economy falls short of the social animal friendliness used by the social planner when determining the efficient allocation. The animal welfare...

This paper compares the Kyoto Protocol and the Paris Agreement in the dynamic game of Battaglini and Harstad (2016). The asymmetric Nash solution of this game reflects the Paris Agreement, whereas the symmetric Nash solution reflects the Kyoto Protocol. In a large set of economies, the Kyoto...

This paper analyzes international environmental agreements (IEAs) in three-stage games consisting of a membership subgame, the signatories’ choice of partial cooperation, and an emissions subgame. Signatories may act as Stackelberg leaders or play Nash. In the Stackelberg game, full...

Within a general equilibrium model, this paper identifies a novel animal welfare externality that occurs if the private animal friendliness in a market economy falls short of the social animal friendliness used by the social planner when determining the efficient allocation. The animal welfare...