If a coalition of countries implements climate policies, nonparticipants tend to consume more, pollute more, and invest too little in renewable energy sources. In response, the coalition’s equilibrium policy distorts trade and it is not time consistent. By adding a market for the right to exploit fossil fuel deposits, I show that these problems vanish and the …rst best is implemented. When the ...

This study relaxes the assumption of perfect and costless policy enforcement found in traditional agricultural policy analysis and introduces enforcement costs and cheating into the economic analysis of output subsidies. Policy design and implementation is modeled in this paper as a sequential game between the regulator who decides on the level of intervention, an enforcement agency that determ...

Article history: Received 18 April 2005 Received in revised form 20 March 2008 Accepted 7 May 2008 Available online 24 May 2008 Which government functions should be decentralized (resp. centralized) once lobbying behavior is taken into account?We find that the answer largely depends on how the interests of the regional lobbies are positioned with respect to the function to be decentralized (res...

This article examines the following case. A set of countries produce goods from labor, government input and natural resources. Because the conservation of natural resources in any country yields utility (e.g. through biodiversity) in every country, and because there is no benevolent international government, a resident of the countries is chosen as the regulator to whom conservation policy is d...

Applied welfare analyses of redistributive systems nowadays benefit from powerful taxbenefit microsimulation programs combined with administrative data. Arguably, most of the distributional studies of that kind focus on social welfare defined as a function – typically inequality or poverty indices – of household equivalized income. In parallel, economic research has made considerable progress i...

This paper studies the impact of tax-financed universal health coverage schemes on macroeconomic aspects of labor supply, asset holding, inequality, and welfare, while taking into account features common to developing economies, such as informal employment and tax avoidance, by constructing a dynamic stochastic general equilibrium model with heterogeneous agents. Agents have different education...

A wide variety of social protection systems coexist within the EU. Some member states provide social insurance that is of Beveridgean inspiration (with universal and more or less flat benefits), while others offer a system that is mainly Bismarckian (with benefits related to past contributions). Labor mobility raises concerns about the sustainability of the most generous and redistributive (Bev...

It is often argued that implicit taxation on continued activity of elderly workers is responsible for the widely observed trend towards early retirement. In a world of laissez-faire or of first-best efficiency, there would be no such implicit taxation. The point of this paper is that when first-best redistributive instruments are not available, because some variables are not observable, the opt...

Compressing porous carbon electrodes is a common approach to improve flow battery performance, but the resulting impact on electrode structure, fluid dynamics, and cell performance not well understood. Herein, microtomographic imaging, load testing, diagnostics are employed characterize how compression-induced changes pressure drop, polarization, mass-transfer scaling. Five different compressio...

This paper constructs a dynamic game model to address the following groundwater management problem, where quantity and quality of the water are taken into account. A group of farmers overexploits a groundwater stock and causes excessive pollution. A water agency wishes to regulate the farmers' activity, in order to reach a minimum level of quantity and quality but is subject to a budget constra...