The Economic Theory of Pollution Control

... assumed that the marginal damage cost is an increasing function of pollution emissions • In other words, the damage caused by a unit of pollution increases progressively as the amount of pollution ... 15 20 Quantity of Waste Emitted Figure 4.1 Marginal pollution control cost Note that pollution control implies a movement towards the origin from the bench mark l...

Ngày tải lên: 03/06/2016, 15:20

... reduces the use of drugs The magnitude of this effect on consumption depends on the elasticity of demand: the more inelastic is demand, the smaller is this effect The role of the elasticity and the ... conviction of illegal suppliers obviously depend on the extent of the difference between the social and private value of consumption of illegal goods...

Ngày tải lên: 23/03/2014, 20:20

... Time: 09:47am prelims.tex The Economic Theory of Annuities i August 22, 2007 Time: 09:47am prelims.tex ii August 22, 2007 Time: 09:47am prelims.tex The Economic Theory of Annuities Eytan Sheshinski ... prospects and other pertinent variables, and the ages at which these differences unfold These questions are at the heart of resolving the “annuity puzzle”: Contrary to t...

Ngày tải lên: 20/06/2014, 20:20

... of medical insurance, for example, depend on the health characteristics of the insured Of course, the value of such insurance to the purchaser depends on the same characteristics Similarly, the ... to the difference between the producer price and the marginal costs of type α individuals, positive or negative, times the change in the quantity of good j due to...

Ngày tải lên: 20/06/2014, 20:20

... but the positive effect of higher survival probability on expected utility dominates The effect on the welfare of other individuals facing only resource redistribution depends on the shape of the ... There exists, however, a well-developed theory on the dependence of steady-state age density distributions on the underlying parameters (e.g., Coale, 1972) The analysis...

Ngày tải lên: 20/06/2014, 20:20

... dynamics out of equilibrium, we follow the standard assumption that the sign of the price of each good changes in the opposite direction to the sign of profits from sales of this good The following ... of annuity is sold at a common price available to all potential buyers In this kind of pooling equilibrium, the price of each type of annuity is equal to the av...

Ngày tải lên: 20/06/2014, 20:20

... stream of returns is fully specified at the time of purchase or sale We continue to denote the annuities held by individuals during their early ages by a(z), ≤ z ≤ M The rate of return on these ... z < T The pooling rate of return on annuities, reflecting adverse selection in the purchase of annuities in equilibrium, is lower than the rate of return on annuities purchase...

Ngày tải lên: 20/06/2014, 20:20

... expectancy of the owners The other risk class experiences a loss for the opposite reason Another important implication of the fact that in equilibrium consumption is independent of the state of nature ... consumption, thereby decreasing the marginal utility of consumption and hence the value of this postponement Which of these opposite effects dominates depends on...

Ngày tải lên: 20/06/2014, 20:20

... age, its rate of decline being equal to the product of the inverse of the coefficient of relative risk aversion and the hazard rate ˆ Optimum retirement age, R, is determined by the same condition ... consumption in the second period The second term is the sum of the expected utilities of two surviving individuals, while the third is the expected utility of...

Ngày tải lên: 20/06/2014, 20:20

... equilibrium is characterized by the purchase of long-term annuities, short sale of some of these annuities later on, or the purchase of additional short-term annuities Since the competitive equilibrium ... ) = q0 − r ), these two schemes are equivalent In addition to the above discussion about the advantages of the flexibility offered by holding a portfolio of options t...

Ngày tải lên: 20/06/2014, 20:20

... on the economics of incomplete information Quarterly Journal of Economics 90: 624–649 Salanie, B 2000 Microeconomics of Market Failure Cambridge, MA: MIT Press Salanie, B 2003 The Economics of ... Prentice Hall Rabin, M 1998 Psychology and economics Journal of Economic Literature 36: 11–46 Ramsey, F P 1927 A contribution to the theory of taxation Economic Journal 37(14...

Ngày tải lên: 20/06/2014, 20:20

... of medical insurance, for example, depend on the health characteristics of the insured Of course, the value of such insurance to the purchaser depends on the same characteristics Similarly, the ... to the difference between the producer price and the marginal costs of type α individuals, positive or negative, times the change in the quantity of good j due to...

Ngày tải lên: 21/06/2014, 00:20

... stream of returns is fully specified at the time of purchase or sale We continue to denote the annuities held by individuals during their early ages by a(z), ≤ z ≤ M The rate of return on these ... z < T The pooling rate of return on annuities, reflecting adverse selection in the purchase of annuities in equilibrium, is lower than the rate of return on annuities purchase...

Ngày tải lên: 21/06/2014, 00:20

... age, its rate of decline being equal to the product of the inverse of the coefficient of relative risk aversion and the hazard rate ˆ Optimum retirement age, R, is determined by the same condition ... consumption in the second period The second term is the sum of the expected utilities of two surviving individuals, while the third is the expected utility of...

Ngày tải lên: 21/06/2014, 00:20

... in insurance markets: The cause of the inefficiency is that individuals disregard the effect of their actions on the equilibrium rate of return on annuities Essentially, these distortions are ... years has focused on the design of SS reforms aimed at closing these deficits The issues involved are not only the economics of annuities but also much broader issues such as t...

Ngày tải lên: 21/06/2014, 00:20