Since surface water flows are often stochastic, there is a role for water reservoirs in protecting users against uncertainty. We assume uncertainty regarding the probability distribution for the stochastic variable. Thus the decision allows for a range of approximate models that could be true,...

We analyze the problem of introducing a new substitute for a polluting process. The environmental effects of this substitute are uncertain but will be resolved over time. In a two-period model where two stock pollutants are substitutes in the abatement cost function, we show that the...

Variability can be an important strategic variable in a contest. We study optimal strategies involving choice of variability in contests with fixed and probabilistic targets, one-round and multiround contests, contests with and without handicaps, and situations where one contestant can modify...

This paper examines the public health consequences of the regulatory subsidy given to light trucks. The empirical challenge is to disentangle the causal effects of light trucks from the selection bias that may occur due to drivers sorting into different vehicle types depending on their...

Using recently assembled data from the Mine Safety and Health Administration (MSHA) we shed new light on the regulatory approach to workplace safety. Because all underground coal mines are inspected quarterly, MSHA regulations will not be ineffective because of infrequent inspections. From over...

This paper illustrates the use of a statistical technique, finite mixture models, to fit the parameters in cumulative prospect theory. For a given decision, some individuals may adopt a gain frame, while others may adopt a loss frame. By using finite mixture models, the best fitting parameters...

An important source of conflict surrounding nuclear energy is that with a very small probability, a large-scale nuclear accident may occur. One way to internalize the associated financial risks is through mandating nuclear operators to have liability insurance. This paper presents estimates of...

Cross-sectional survey data on Swedish adolescents aged 12--18 was used to analyse perceived risks of smoking-related lung cancer, the determinants of these risk perceptions, and how these perceptions related to smoking behaviour. Three major conclusions were drawn: (1) that both smokers and...

We present the first nationwide value of life estimates for the United States at more than one point in time. Our estimates are for every ten years between 1940 and 1980, a period when declines in fatal accident rates were historically unprecedented. Our estimated elasticity of value of life...