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The choice between taxes and tradable permits has been independently analysed by two distinct research traditions. The first proceeds from Weitzman's partial equilibrium stochastic model and concludes that a tax should be preferred if the marginal abatement cost curve is steeper than the...
Persistent link: https://www.econbiz.de/10008789416
Recent developments in econometrics and economic theory attest the growing evidence of strong uncertainty. The paper … support Keynes's powerful concepts and theory. It emphasizes how replacing ‘risk' with strong uncertainty suffices to … required to give us some stability in a monetary economy). As it is not based on a restrictive definition of uncertainty …
Persistent link: https://www.econbiz.de/10008791285
An optimal contract may involve randomization when the agents differ in their attitudes towards risk, so that randomization enables the principal to relax the incentive constraints. The paper provides a necessary and sufficient condition for local random deviations to be welfare improving in a...
Persistent link: https://www.econbiz.de/10010635001
International differences in fuel taxation are huge, and may be justified by different local negative externalities that taxes must correct, as well as by different preferences for public spending. In this context, should a worldwide unique carbon tax be added to these local taxes to correct the...
Persistent link: https://www.econbiz.de/10010635013
-arbitrage condition of finance. This result, which extends our earlier theorems, shows that private information or price uncertainty would …
Persistent link: https://www.econbiz.de/10010738445
Our earlier papers had extended to asymmetric information some classical existence theorems of general equilibrium theory, under the standard assumption that agents had perfect foresights, that is, they knew at the outset which price would prevail tomorrow on each spot market. Yet, observation...
Persistent link: https://www.econbiz.de/10010738450
Focussing on their analysis of the optimal public goods provision problem, this paper follows the parallel development of equilibrium models and mechanism design after the accommodation of Samuelson's definition of collective goods to the general equilibrium framework. Both paradigms lead to the...
Persistent link: https://www.econbiz.de/10010738669
My paper examines how Lange integrated the Walrasian and the Keynesian ingredients in his research. I argue that his works proposed two kinds of macroeconomics. The first kind was IS-LM, but IS-LM interpreted as an aggregate version of Walras' general equilibrium model (Lange, 1938). The second...
Persistent link: https://www.econbiz.de/10010899492
Abstract This article studies a new class of models which synthesize the two traditions of general equilibrium with nonclearing markets and imperfect competition on the one hand, and dynamic stochastic general equilibrium (DSGE) models on the other hand. This line of models has become a central...
Persistent link: https://www.econbiz.de/10010930194
On démontre la stabilité de l'équilibre dans une économie walrasienne complètement décentralisée dans laquelle les prix sont fixés par les agents économiques et où échange et production ont lieu hors équilibre.
Persistent link: https://www.econbiz.de/10011025559