An expected utility based cost-benefit analysis is in general fragile to its distributional assumptions. We derive necessary and sufficient conditions on the utility function of the expected utility model to avoid this. The conditions ensure that expected (marginal) utility remains finite also...

In searching for an appropriate utility function in the expected utility framework, we formulate four properties that we want the utility function to satisfy. We conduct a search for such a function, and we identify Pareto utility as a function satisfying all four desired properties. Pareto...

This paper studies the interplay between climate, health, and the economy in a stylized world with eleven heterogeneous regions, with special emphasis on USA, Europe, China, India, and Africa. We introduce health impacts into a simple economic integrated assessment model where both the local...

This paper develops a dynamic model consisting of two regions (North and South), in which the accumulation of human capital is negatively influenced by the global stock of pollution. By characterizing the equilibrium strategy of each region, we show that the regions' best responses can be...

Many regression models have two dimensions, say time (<italic>t</italic> = 1,…,<italic>T</italic>) and households (<italic>i</italic> = 1,…,<italic>N</italic>), as in panel data, error components, or spatial econometrics. In estimating such models we need to specify the structure of the error variance matrix <italic>Ω</italic>, which is of dimension <italic>T N</italic> × <italic>T N</italic>. If <italic>T N</italic> is...