This paper presents a general-equilibrium model of environmental tax reform that introduces a health status depending on environmental quality and medical consumption, and tax deductions for medical expenditure. It distinguishes between two types of health effect: environmentally and medically...

Time-saving goods and services have become increasingly popular because they increase a household's disposable time, which could be allocated to other activities that consume energy and/or electricity. We develop a simple theoretical model and define the time rebound effect as the increased...

In this paper, we study the relationship between welfare and real interest rates in Aiyagari and Williamson's (2000) setting. They developed a dynamic insurance contract model with an incomplete market monetary economy and demonstrated that the optimal inflation rate is positive. This paper...

Some studies find that real equity prices in economies damaged during World War II tended to rise sharply at the beginning of actual damage taking place during the war. This paper introduces an empirically plausible degree of persistence from the impact of World War II and demonstrates that...

In this note, we consider the effect on equity premiums of a representative household’s subjective expectations during disasters. In particular, we focus on the effect of doubt during disasters. We derive analytical solutions of equity premiums in the model of power utility function and...