Growing concerns over climate change and the potential for large damages due to non-linear processes underscore the need for meaningful sustainability assessment of an economy. Economists have developed rigorous approaches to conceptualizing sustainability based on the paradigm of weak sustainability, which assumes infinite substitution between manufactured and natural capital stocks. In contra...

Understanding the extent to which people substitute activities across time is important for evaluating behavior and welfare impacts in many contexts including assessing the damages caused by oil spills and climate change impacts. We implement a flexible, individualized approach to measuring how people value their leisure time. We incorporate these heterogeneous values into a structural demand m...

Normalising CES production functions in the calibration of basic dynamic models allows to choose technology parameters in an economically plausible way. When variations in the elasticity of substitution are considered, normalisation is necessary in order to exclude arbitrary effects. As an illustration, the effect of the elasticity of substitution on the speed of convergence in the Ramsey model...

awardness about structure of production technology and its characteristics is a usefull tool for planning in agricultural sector. in this regard, this study aims to determine some effective parameters of structure of production technology in rain fed barley production. before estimating these parameters, we examine the aggregation consistency condition for barley fields using the mean scaling t...

In this paper we develop a positive calibrated approach to stochastic dynamic programming. Risk aversion, discount rate, and intertemporal substitution preferences of the decision-maker are calibrated by a procedure that minimizes the mean squared error from data on past decisions. We apply this framework to managing stochastic water supplies from Oroville Reservoir, located in Northern Califor...

Based on the intertemporal substitution effect, high inflation expectations can stimulate agents to consume now rather than in future. However, under background of global climate policy changes, how affect energy consumption? Using bootstrap Granger full-sample causality test and sub-sample rolling window tests, this study examines effect consumption U.S. The results based data indicate no betw...