First-and second-best allocations under economic and environmental uncertainty

This paper uses a micro-founded DSGE model to compare second-best optimal environmental policy and the resulting allocation to first-best allocation. The focus is on the source and size of uncertainty, and how this affects optimal choices and the inferiority of second best vis-à-vis first best.

MoreLess

Year of publication:	2010
Authors:	Angelopoulos, Konstantinos ; Economides, George ; Philippopoulos, Apostolis
Institutions:	Scottish Institute for Research in Economics (SIRE)
Subject:	General equilibrium \| uncertainty \| environmental policy \| second best

More details

Series:	SIRE Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series SIRE-DP-2010-99 Number 2010-99
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010553670