We are considering for examination an Irreversible Investment under Uncertainty, subsidizedby the government. If the government announces the termination of a form of subsidization,investors may decide to realize their investment in order to obtain the subsidy. These investors mighthave...

If the government announces the termination of a subsidy paid for an irreversible investment under uncertainty, investors might decide to realize their investment so as to obtain the subsidy. These investors might have postponed an investment if future payment were assured. Depending on the...

Aggregate votes for incumbent parties in post-war Germany were determined by the weighted-average growth of real per capita disposable income and the attrition of power, especially when the Federal Chancellor sought re-election more than twice. Similar to earlier results for the US, each...

Grandfather rights are currently used in the European Union to allocate airport slots. This article shows that airports refer such a use-it-or-lose-it rule to unconditional property rights. Assuming that there are informational asymmetries between airports and air carriers because air carriers...

Opportunistic politicians use the composition of public debt as a signal for competence. A competent government will not issue long-term nominal debt, as optimal to balance the budget, but long-term inflation-indexed debt. We consider politicians that pursue the objective of a balanced budget...

This paper studies whether in Pakistan the dynamic behavior of unemployment, inflation, budget deficit and real GDP growth is systematically affected by the timing of elections. We cover the period from 1973-2009. Our results can be summarized as follows: 1. Unemployment tends to be lower in...

This study analyzes the minimum quality standard set by the European Union (EU) through Regulation 1371/2007 of Rail Passengers' Rights and Obligations. A welfare maximizing quality standard raises quality and consumer satisfaction, but does not improve the modal split of rail transport. A...

If an emission reduction agreement with participation of all players is not enforceable because politicians are too myopic or not able to commit themselves to sustainable policies or costs of reducing emissions are too high, strategic investments in research and development (R&D) of green...