This paper presents a simple dynamic general equilibrium model with supply-side strategic interactions to study the economic effects of mitigating greenhouse gas emissions in an economy with an emission cap and oligopolistic firms competing on prices. With such endogenous market structure a...

This paper investigates the economic consequences of migration in the Ramsey-type dynamic optimizing context. In contrast to Hazari and Sgro (2003) conclusions, we show that with a Cobb-Douglas production function migration unambiguously reduces per-capita domestic consumption growth, whereas...

This paper derives the optimal response of the primary budget surplus to changes in the debt-to-GDP ratio in a stochastic model of debt. Under the optimal solution the surplus reactivity to the debt-to-GDP ratio is independent of the debt ratio itself, but its size depends on economic...

This paper studies the role of expectations and monetary policy in shaping the response ofthe economy to climate actions. We show that in a stochastic environment and without thestandard assumption of perfect rationality of agents, there is more uncertainty regardingthe time-path and the impact...