This paper considers a capital accumulation model with the specific feature that adjustment costs depend on investment relative to the size of the capital stock. This framework has, beyond its plausible yet neglected setting, a number of interesting consequences. In particular, the possibility...

Deregulation is traditionally endorsed by economists but meets either little reception by politicians or is substantially weakened within the political process. Many papers discuss this aspect, primarily from a rent-seeking aspect. This paper emphasizes the dynamics of deregulation when...

This paper considers efficient and monopolistic extraction of non-renewable (energy) resources when the resource consumption leads simultaneously to a stock externality (‘global warming’). The case of monopolistic supply leads to a dynamic game between cartelised producers and a consumers'...

This paper introduces a non-cooperative and dynamic framework of intrafamiliar decisions where the partners obtain utility from own consumption, account for the partner's benefit from consumption ("altruism"), and appreciate wealth. Stationary wealth (and thus stationary consumption) decreases...

This paper considers and compares two different legal means -- full liability and standard – to reduce and to regulate pollution at a local level accounting for private information about benefits and costs. The familiar polluter pays principle makes the polluter liable for any damage. Since...

This paper extends the strategic interactions between producers of fossil fuels concerned about their profits and a taxing government concerned about the consumers’ welfare for uncertainty: global warming follows an Itô -process. Stochasticity requires to differentiate between reversible and...

The recent political changes will not only affect the domestic economies of the Eastern European countries but also important world commodity markets. This paper investigates consequences for world energy markets. For this purpose, a disaggregated model of the Eastern European energy markets is...