We study strategic investment in continuous time with positive externalities of changing magnitude. Our model particularly allows for two correlated risk factors. Constructing subgame-perfect equilibria with pure and mixed strategies, we observe the novel effect that it is important for the...

This paper provides a comparison of 12 OECD countries on the basis of the (multidimensional) inequality in both disposable income and access to public goods. The public goods considered, measured at the regional level, are infant mortality and pupils/teacher ratios at public schools. The...