The paper introduces the concept of a firm's normal employment level as a weighted average of past employment levels and it analyzes the impact of an incentive scheme in which a firm receives a reward (or pays a penalty) when it deviates above (below) its normal employment level. The result is...

Uncertainty is an important aspect of the environmental issue quite a few of the basic functions describing the role of the environment for the economic system are not well known "ex ante". Emissions interact through rather complex and intricate systems and pollutants such as DDT accumulate...