Policy evaluation based on the estimation of dynamic stochastic general equilibrium models with aggregate macroeconomic time series rests on the assumption that a representative agent can be identified, whose behavioural parameters are independent of the policy rules. Building on earlier work by...

Considering both trade globalization and the growing media coverage of the deterioration of natural resources and the ozone layer, the average citizen has become more demanding as a consumer when it comes to the environmental quality of the products he purchases. In this context, the...