We propose a new methodology exploring Markov perfect equilibrium strategies in differential games with regime switching. Specifically, we develop a general game with two players having two kinds of strategies. Players choose an action that influences the evolution of a state variable, and...

This paper develops a two-country general equilibrium model with endogenous growth where governements behave strategically in the provision of productive infrastructure. The public capitals enter both national and foreign production as an external input, and they are financed by a flat tax on...

This paper develops a two-country general equilibrium model with endogenous growth where governments behave strategically in the provision of productive infrastructure. The public capitals enter both national and foreign production as an external input, and they are …nanced by a at tax on...

This paper provides general theorems about the control that maxi- mizes the mixed Bentham-Rawls (MBR) criterion for intergenerational justice, which was introduced in Alvarez-Cuadrado and Long (2009). We establish sufficient concavity conditions for a candidate trajectory to be optimal and...

We propose a new methodology exploring Markov perfect equilibrium strategies in differential games with regime switching. We develop a general game with two players. Players choose an action that inuences the evolution of a state variable, and decide on the switching time from one regime to...

Using a laboratory experiment, we study the impact of a sudden increase in the common-pool size on within-group fighting, i.e. the paradox of the plenty. We also consider the role of leader behavior in avoiding this paradox. In the first stage, a randomly chosen leader of the group determines...

This paper solves a second-best problem where a government has in particular to choose whether to tax financial inflows (capital con- trols) or not, and when. A multi-stage optimal control technique is used to this end. First, it is shown that it is optimal to switch in finite time from capital...

We consider a general control problem with two types of optimal regime switch. The first one concerns technological and/or institutional regimes indexed by a finite number of discrete parameter values, and the second features ecological-like regimes relying on given threshold values for given...

Agents with ex-ante claims over a common pool resource (CPR) of uncertain size face the risk of resource shortage if the sum of the claims they have over the common pool resource is incompatible with the actual resource size. In case of shortage, a sharing rule or bankruptcy rule is required to...

This paper analyzes the dynamic interaction between two regions with interconnected river basins. Precipitation is higher in one river- basin while water productivity is higher in the other. Water transfer increases productivity in the recipient basin, but may cause environmental damage in the...