Design of environmental regulation has substantial implications for size distribution and mass of firms within and across industries in the long run. In a general equilibrium model that accounts for endogenous entry and exit of heterogeneous firms, the welfare impacts of emissions trading are...

This paper offers a rationale for the development of the barter industry in industrialized economies. It argues that, in a context of imperfect competition, barter represents a profitable and efficient system of exchange. Thanks to barter, even if already at the optimum, a monopolist can still...