The probability that an agent takes a certain action or a certain event occurs depends often on the actions taken by some agents. If this probability depends not only on current actions but on the sum of all past actions, these stock-dependent risks imply an intertemporal effect. In the present...

The paper presents an analysis of spatial competition between two firms in a circular market. It is shown that the existence problem of a Bertrand-Nash- Equilibrium exists for the circular market in the same way as for the linear and bounded market. This is demonstrated by directly studying the...

This paper tries to clear the confusion in the literature about the potential of environmental tax reforms to yield a double dividend. In opposition to a number of recent papers it is found that the possibility for a double dividend depends largely on the substitutabllity characteristics of...

Banking and balance of payments crises often happen quite simultaneously. We show that the impact of an expected devaluation on the net worth of commercial banks with a short open foreign exchange position speeds up the timing of a balance of payments crisis. We employ an asymmetric information...

This paper deals with the influence of factor mobility on local infrastructure policy and rent-seeking activities of local interest groups. It employs a model where households differ with respect to their endowment with the immobile factor land. Local governments decide about the level of...

The objective of this paper is to show how to initiate a market for carbon dioxide and other greenhouse gases by introducing a feasible system of tradeable emission permits, which can be applied as an efficient instrument of environmental policy in single countries and in the whole European...

Netzwerkeffekte können zu imperfektem Wettbewerb führen und damit eine strategische Handelspolitik begründen. In einem Modell horizontaler Differenzierung mit Netzwerkeffekten wird die Wirkung strategischer Handelspolitik untersucht. Es zeigt sich, daß staatliche Interventionen tatsächlich...