We study an overlapping generations economy in which environmental degradation results from economic activity and affects agents' uncertain lifetimes. Life expectancy depends positively on economic activity and negatively on the stock of pollution. This can make the growth-survival relationship...

We study how investor behaviour affects the transmission of financial crises. If investors exhibit decreasing relative risk aversion, then negative wealth shocks increase the risk premium required to hold risky assets. We integrate this into a second generation model of currency crises which...

We consider markets in which agents aupply one unit of time that is equal to the duration of the market. We show that a coalitional game can be generated by such a market if and only if the characteristic function of the game is superadditive. We also characterize the vectors of balancing...