Hick's theorem permits aggregation of commodities when their relative prices are fixed, but, contrary to a widely expressed view, it does not require that they be aggregated. Even where commodities have identical prices, all of their income elasticities and many of their price elasticities can...

This paper discusses the rose of information structure (i.e., information cost, reliability, and distribution among agents) in the design of a regulatory mechanism for controlling non-point source pollution. An ambient concentration tax mechanism is examined for non-point source pollution with...

Bonds have recently been promoted as an alternative tool for controlling environmental damages, particularly in those instances when the innovative activities of a firm have uncertain future impacts [Costanza and Perrings (1990)]. Under this mechanism, a firm would post a bond ex ante,...

The question of how insurance programs affect agricultural input use is commanding increasing attention. Previous studies disagree on the likely effects of insurance on fertilizer application rates. Whether insurance is a complement or a substitute for fertilizer depends, in part, on whether the...

Matching grants are commonly used to influence the bundle of public goods provided by governments. We design a contingent valuation experiment to determine the value individuals place on improved recreational facilities under a matching grant proposal. The experiment provides an opportunity to...

Xepapadeas [10] develops a pollution abatement incentive mechanism that both reduces the information requirements of regulator and is "budget balancing" drawing only on the social gains from pollution abatement to encourage firm compliance. This paper demonstrates that, contrary to Xepapadeas...

 Random Utility Maximization (RUM) models of recreation demand are typically plagued by limited information on environmental and other attributes characterizing the available sites in the choice set. To the extent that these unobserved site attributes are correlated with the observed...