Integrated assessment models lack a microeconomic foundation in modelling environmental damages to the economy. To overcome this, damage coefficients are incorporated in standard microeconomic models. Firms and consumers take both damages and prices as given. Demand, supply, profit and...

Much analysis in macroeconomics empirically addresses economy-wide incentives behind consumer/investment choices by using insights from the way a single representative household would behave. Heterogeneity at the micro level can jeopardize attempts to back up the representative consumer...

The employment behavior of mothers is strongly influenced by labor market regulations and certain institutional arrangements, which both vary greatly across European countries. Using the European Community Household Panel (ECHP) 1994-2001 for Denmark, Germany, Italy and the United Kingdom, which...

We analyse how money as a store of value affects the decisions of a representative household under diversifiable and non-diversifiable risks given that the central bank successfully stabilizes the rate of inflation at a low level. Assuming exponential utility allows us to derive an explicit...

This paper analyzes a merger of large manufacturers with divestiture in the French coffee market. In contrast to previous approaches used to study the effects of upstream divestitures on prices and welfare, we model the vertical market structure. First, our results show that the standard policy...

This paper explores determinants of church attendance and the formation of 'religious human capital' in Germany within a Becker-style allocation-of-time framework. The analysis is based on data derived from the German Socio-Economic Panel (GSOEP). Taking advantage of the longitudinal structure...

Becker and Murphy (1988) constructed, in a well-known paper, a model of rational addiction in which people solve a dynamic optimization problem, choose an optimal timepath of drug consumption and thereby maximize lifetime utility. The model leads to the hypothesis that future consumption is a...

In den modernen Gesellschaften ist die Freizeit eine Dimension des Lebens, die immer mehr an Bedeutung gewinnt. Die Lebensstilforschung vertritt die Ansicht, dass sozio-ökonomische Unterschiede aufgrund der langfristigen Verbesserung der materiellen Lebensumstände an Bedeutung verloren haben...

The extension of subsidized child care is currently on the top of the political agenda in Germany. In this paper the excess demand for subsidized child care slots is estimated using a partial observability model in the style of Abowd and Farber (1982). The results show that more than 50 percent...

Previous poverty assessments for Burkina Faso were due to the neglect of some important methodological issues misleading and led to the so-called ?Burkinab? Growth-Poverty-Paradox?, i.e. relatively sustained macro-economic growth, but almost constant poverty. We estimate that poverty...