42 research outputs found
International Emission Policy with Lobbying and Technological Change
I examine the implementation of emission policy in a union of countries. Production in any country incurs emissions that pollute all over the union, but efficiency in production can be improved by research and development (R&D). I compare four cases: laissez-faire, Pareto optimal policy, lobbying with centrally-determined emission quotas and lobbying with emission trade. The main findings are as follows. With emission quotas, the growth rate is socially optimal, but welfare sub-optimal. Emission trade speeds up growth from the initial position of laissez-faire, but slows down from the initial position of centrally-determined emission quotas
International emission policy with lobbying and technological change
I examine emission policy in a union of countries when production in any country incurs emissions that pollute all over the union, but efficiency in production is improved by research and development (R&D). I compare four cases: Laissez-faire, Pareto optimal policy, and the case of a self-interested central planner that decides on nontraded or traded emission quotas. I show that with nontraded quotas, the growth rate is socially optimal, but welfare sub-optimal. Trade in quotas speeds up growth from the initial position of laissez-faire, but slows down growth from the initial position of nontraded quotas
“Itô's Lemma” and the Bellman Equation for Poisson Processes: An Applied View
stochastic differential equation, Poisson process, Bellman equation, portfolio optimization, consumption optimization, C61, D81, D90, G11,
Proof of global stability, transitional dynamics, and international capital flows in a two-country model of innovation and growth
convergence, international trade, international capital flows, stability, endogenous growth, F12, O41,