We are concerned with sectoral effects of an increase in the endowment of an input factor which is specific to a single industry. Such effects have come to be known in the literature as 'Dutch Disease'. We look into related supply-side aspects which appear to be significant if seen from the...

A unified framework for understanding asset prices and aggregate fluctuations is critical for understanding both issues. I show that a real business cycle model with external habit preferences and capital adjustment costs provides one such framework. The estimated model matches the first two...

In this paper a method is developed to derive prices for natural goods from information about material and energy flows within ecosystems. The derivation is based on an analogy between ecological and economic systems: both systems are characterized by flows of material and energy. To derive...