Related papers: Do Distributional Concerns Justify Lower Environme…
The paper develops a general methodology for analyzing policies with path-dependency (hysteresis) in stochastic models with forward looking optimizing agents. Our main application is a macro-climate model with a path-dependent climate…
The Nobel-price winning Mirrlees' theory of optimal taxation inspired a long sequence of research on its refinement and enhancement. However, an issue of concern has been always the fact that, as was shown in many publications, the optimal…
In economics literature, it is accepted that all people are rational and they try to maximize their utilities as possible as they can. In addition, economic theories are formed with the assumptions not suitable to real life. For instance,…
Contemporary digital capitalism relies on the large-scale extraction and commodification of personal data. Far from revealing isolated attributes, such data increasingly exposes intersectional social identities formed by combinations of…
A global agreement on how to reduce and cap human footprint, especially their GHG emissions, is very unlikely in near future. At the same time, bilateral agreements would be inefficient because of their neural and balanced nature.…
Greenhouse gas emissions from the residential sector represent a significant fraction of global emissions. Governments and utilities have designed incentives to stimulate the adoption of decarbonization technologies such as rooftop PV and…
In this paper investigations by the same authors on environmental issues concerning the control of the pollution produced by human activities have been extended to include costs related to environmental interventions. The proposed model…
Averting the effects of anthropogenic climate change requires a transition from fossil fuels to low-carbon technology. A way to achieve this is to decarbonize the electricity grid. However, further efforts must be made in other fields such…
In the so-called ``fair'' models of peer-to-peer wealth exchanges, economic inequality tends to reach its maximum value asymptotically. This global trend is evident as the richest continuously accumulate a larger share of wealth at the…
We analyze the possibility of reduction of systemic risk in financial markets through Pigouvian taxation of financial institutions which is used to support the rescue fund. We introduce the concept of the cascade risk with a clear…
Climate mitigation decisions today affect future generations, raising questions of intergenerational equity. Integrated assessment models (IAMs) rely on discounting to evaluate long-term policy costs and benefits. Using the DICE model, we…
Almost every public pension system shares two attributes: earning deductions to finance benefits, and benefits that depend on earnings. This paper analyzes theoretically and empirically the trade-off between social insurance and incentive…
In this paper, we study the problem of maximizing the difference between an adaptive submodular (revenue) function and an non-negative modular (cost) function under the adaptive setting. The input of our problem is a set of $n$ items, where…
Fair re-ranking aims to redistribute ranking slots among items more equitably to ensure responsibility and ethics. The exploration of redistribution problems has a long history in economics, offering valuable insights for conceptualizing…
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…
We develop a framework for difference-in-differences designs with staggered treatment adoption and heterogeneous causal effects. We show that conventional regression-based estimators fail to provide unbiased estimates of relevant estimands…
Not too long ago, offshoring was considered a panacea for many U.S. companies to achieve economic sustainability. Offshoring also created an unnecessary movement of goods between the point of consumption and the point of sourcing and hence…
Counterfactual explanations provide individuals with cost-optimal recommendations to achieve their desired outcomes. However, when a significant number of individuals seek similar state modifications, this individual-centric approach can…
We consider a model of fishery management, where $n$ agents exploit a single population with strictly concave continuously differentiable growth function of Verhulst type. If the agent actions are coordinated and directed towards the…
We analyze the implications of transboundary pollution externalities on environmental policymaking in a spatial and finite time horizon setting. We focus on a simple regional optimal pollution control problem in order to compare the global…