Nonlinearity, Complexity and Randomness in Economics presents a variety of papers by leading economists, scientists, and philosophers who focus on different aspects of nonlinearity, complexity and randomness, and their implications for economics. A theme of the book is that economics should be...

Privately informed experts with heterogeneous expertise decide when to give advice and what advice to give. Each expert's utility depends upon that expert's own message as well as those of the other experts. Under different forms of payoff externalities, we find varying results for the optimal...

We advance an original assumption whereby a good state of the environment positively affects labor productivity in R&D such that deteriorating environmental quality negatively impacts R&D. We study the implications of this assumption for the optimal solution in an R&D-based model of growth,...

This paper contributes to the literature on the measurement of social classes by providing a wealth threshold for distinguishing the rich from the middle class and an intensity index for measuring the extent of affluence within a country. The empirical applicability of this approach is then...

This article proposes a theory of banking of emission permits under conditions of regulatory uncertainty. Based on a two-period partial equilibrium framework, we examine the effects of increasing risk-in the sense of a mean preserving spread-regarding a future permit allocation at the firm...

Like all human beings, migrants may have a concern about their prestige or social status in the eyes of left-home family and friends. They can remit money in order to signal their economic success and increase their status. We show that if migrants' income is private information, unsuccessful...

Recent literature in the field of cultural economics highlights a possible inversion in the usual causality relation (from economic growth to culture) and points out that culture may represent an important driver of economic growth. By viewing culture in line with Throsby's (2001) definition of...