Now showing items 1-10 of 434
Additive Damages, Fat-Tailed Climate Dynamics, and Uncertain Discounting
This paper in applied theory argues that there is a loose chain of reasoning connecting the following three basic links in the economics of climate change: 1) additive disutility damages may be appropriate for analyzing ...
Optimal Currency Areas
(MIT Press, 2002)
Rare Disasters and Asset Markets in the Twentieth Century
(MIT Press, 2006)
The potential for rare economic disasters explains a lot of asset-pricing puzzles. I calibrate disaster probabilities from the twentieth century global history, especially the sharp contractions associated with World War ...
Intergenerational Risk Sharing in the Spirit of Arrow, Debreu, and Rawls, with Applications to Social Security Design
(University of Chicago Press, 2007)
This paper examines the optimal allocation of risk in an overlapping‐generations economy. It compares the allocation of risk the economy reaches naturally to the allocation that would be reached if generations behind a ...
The AIDS Epidemic and Its Economic Roots
(Harvard Health Policy Society, 2009)
The Opium Wars, Opium Legalization and Opium Consumption in China
(Taylor & Francis, 2008)
The effect of drug prohibition on drug consumption is a critical issue in debates over drug policy. One episode that provides information on the consumption-reducing effect of drug prohibition is the Chinese legalization ...
Bailout or Bankruptcy?
(Cato Institute, Washington, DC, 2009)
Individual Laboratory-Measured Discount Rates Predict Field Behavior
We estimate discount rates of 555 subjects using a laboratory task and find that these individual discount rates predict inter-individual variation in field behaviors (e.g., exercise, BMI, smoking). The correlation between ...
How Are Preferences Revealed?
Revealed preferences are tastes that rationalize an economic agent's observed actions. Normative preferences represent the agent's actual interests. It sometimes makes sense to assume that revealed preferences are identical ...