Motivated by the increasing use of external instruments to identify structural vector autoregressions (SVARs), we develop algorithms for exact finite sample inference in this class of time series models, commonly known as proxy-SVARs. Our algorithms make independent draws from the...

Motivated by the Covid-19 epidemic, we analyse a SIR model of an epidemic but with endogenous social distancing, and calibrate it to UK data to study various hypothetical scenarios of government intervention regarding social distancing. We explicitly take into account that (a) there is...

Dams are essential for water storage and hydropower generation, but change river flow patterns and endanger local environments. Dam projects may further exacerbate already existing problems in trans-boundary rivers. We consider three scenarios of institutional factors: (1) each country pursues...

The reader will find in this paper a simple theoretical framework where to analyze the usual issues from environmental and economic growth literature, including the problem of global warming, the corresponding climate change, and the impact on economic system. This paper considers two...

When there are pollution externalities the competitive equilibrium is not Pareto-optimal nor environmentally sustainable even if abatment activities are endogenously decided. In this paper we introduce the possibility of an ecological catastrophe like the one predicted by the global climate...

When there are pollution externalities the competitive equilibrium is not Pareto-optimal nor environmentally sustainable even if abatement activities are endogenously decided. In this paper we introduce the possibility of an ecological catastrophe like the one predicted by the global climate...

Following Jones and Williams (2000), we assume that R&D is simultaneously subject to positive and to negative external effects (e.g., the non rival nature of technology conflicts with congestion externalities). This observation allows to conceive an economy where two R&D sectors evolve without...

Technological progress produces both positive and negative economy wide externalities. Although positive spillovers seem to prevail most of the times, there is evidence and logical arguments revealing that investment in R&D can exceed the corresponding socially optimal level. Taking on board the...

We model cooperative games when externality affects the payoffs of coalitions. The coalitional games among countries committing to pollution reduction can be easily embedded into such a framework. We evaluate the individual welfare for countries joining the International Environmental Agreements...

We develop a novel theoretical framework for studying ecosystems in which interacting state variables which are affected by management decisions diffuse in space. We identify (i) mechanisms creating spatial patterns when economic agents maximize profit at each site by ignoring the impact of...