Related papers: General Equilibrium Theory for Climate Change
The current framework for climate change negotiation models presents several limitations that warrant further research and development. In this track, we discuss mainly two key areas for improvement, focusing on the geographical impacts and…
In this paper, we compare different mitigation policies when housing investments are irreversible. We use a general equilibrium model with non-homothetic preferences and an elaborate setup of the residential housing and energy production…
The goal of climate change governance is to stabilize greenhouse gas concentrations. This requires the reduction of anthropogenic global net emissions. In the pursuit of such a reduction, knowledge of greenhouse gas sources and sinks is…
We analyse the effect of a proportional wealth tax on asset returns, portfolio choice, and asset pricing. The tax is levied annually on the market value of all holdings at a uniform rate. We show that such a tax is economically equivalent…
Traffic is a significant source of global carbon emissions. In this paper, we study how carbon pricing can be used to guide traffic towards equilibria that respect given emission budgets. In particular, we consider a general multi-commodity…
This paper establishes the existence of equilibrium in an economy with production and a continuum of consumers, each of whose incomplete and price-dependent preferences are defined on commodities they may consider deleterious, bads which…
A general information equilibrium model in the case of ideal information transfer is defined and then used to derive the relationship between supply (information destination) and demand (information source) with the price as the detector of…
Experimental economics has repeatedly demonstrated that the Nash equilibrium makes inaccurate predictions for a vast set of games. Instead, several alternative theoretical concepts predict behavior that is much more in tune with observed…
Recent literature on computational notions of fairness has been broadly divided into two distinct camps, supporting interventions that address either individual-based or group-based fairness. Rather than privilege a single definition, we…
Various multi-agent models of wealth distributions defined by microscopic laws regulating the trades, with or without a saving criterion, are reviewed. We discuss and clarify the equilibrium properties of the model with constant global…
In this paper we present a simplified model of a proportional taxation system where citizens decide whether to pay taxes or evade them. We initially derive a dynamic equation for the fraction of evaders and then present both its critical…
A simple heuristic model, including the multiple exchanges between economic agents, is used to explain the mechanism of emerging and maintenance of social inequality in the market economy. The model allows calculating a density function of…
This paper examines optimal risk sharing for empirically realistic risk attitudes, providing results on Pareto optimality, competitive equilibria, utility frontiers, and the first and second theorems of welfare. Contrary to common…
Despite many examples to the contrary, most models of elections assume that rules determining the winner will be followed. We present a model where elections are solely a public signal of the incumbent popularity, and citizens can protests…
Generalising a result of classical mechanics an infinite set of conserved quantities can be found for the bare equations of motion describing the evolution of a scalar field in out of equilibrium quantum field theory, in the large N…
This paper studies the optimal extraction policy of an oil field as well as the efficient taxation of the revenues generated. Taking into account the fact that the oil price in worldwide commodity markets fluctuates randomly following…
We unify two recent results concerning equilibration in quantum theory. We first generalise a proof of Reimann [PRL 101,190403 (2008)], that the expectation value of 'realistic' quantum observables will equilibrate under very general…
The Boltzmann distribution predicts the collective behavior of systems at thermodynamic equilibrium as a function of their constituent parts. Yet most systems in nature are not at equilibrium, and a unified theory of their behavior does not…
We show that a large effective number of commodities can be a source of equilibrium stability and uniqueness: expanding substitution opportunities strengthens aggregate substitution effects. We study finite dated-commodity exchange…
We analyze how equilibrium housing prices are determined in the process of economic development within an overlapping generations model with perfect housing and rental markets. We characterize the rent growth rate in all equilibria. The…