We use the differences between life satisfaction and emotional well-being of employed and unemployed persons to analyze how a person's employment status affects cognitive well-being. Our results show that unemployment has a negative impact on cognitive, but not on affective well-being, which we...

This paper analyzes the impact of a statutory minimum wage on employment, wage inequality, public expenditures, and aggregate income in the low-wage sector for two scenarios: a competitive labor market and a monopsonistic labor market. Using data from the 2006 wave of the German Socio-Economic...

This paper analyses second-best optimal environmental policies in the presence of a double dividend. Using a partial equilibrium model, the paper first reconfirms the well-known result that the existence of a double dividend (in its weak form) favours environmental policy instruments which -...

Extraction of shale gas in Germany (fracking) is better left as an option for the future. Today, owners of deposits in many other countries have uncertain property rights and extract too quickly. German deposits may appreciate in value if left in the ground. They also better contribute to...

We use the differences between life satisfaction and emotional well-being of employed and unemployed persons to analyze how a person’s employment status affects cognitive well-being. Our results show that unemployment has a negative impact on cognitive, but not on affective well-being, which...

Adaptation is omnipresent but people systematically fail to correctly anticipate the degree to which they adapt. This leads individuals to make inefficient intertemporal decisions. This paper concerns optimal income taxation to correct for such anticipation-biases in a framework where consumers...

Economic models of climate policy (or policies to combat other environmental problems) typically neglect psychological adaptation to changing life circumstances. People may adapt or become more sensitive, to different degrees, to a deteriorated environment. The present paper addresses these...

Previous studies find that past unemployment reduces life satisfaction even after reemployment for non-monetary reasons (unemployment scarring). It is not clear, however, whether this scarring is only caused by employment-related factors, such as worsened working conditions, or increased future...