Price Versus Quantities Versus Indexed Quantities

Dynamic environmental policy with strategic firms: prices versus quantities

Environmental regulators often have imperfect information about regulated firms’ abatement costs. In this paper we compare taxes and emissions permits in a dynamic setting in which firms behave strategically. The regulator updates policy over time based upon previous aggregate industry performance, assuming that firms are not strategic. We find that strategic firms facing an emissions tax have ...

Prices versus quantities in a vintage capital model

The heterogeneity of the available physical capital with respect to productivity and emission intensity is an important factor for policy design, especially in the presence of emission restrictions. In a vintage capital model, reducing pollution requires to change the capital structure through investment in cleaner machines and to scrap the more polluting ones. In such a setting we show that em...

The Development of Proportional Reasoning: Effect of Continuous Versus Discrete Quantities

This study examines the development of children’s ability to reason about proportions that involve either discrete entities or continuous amounts. Six-, 8and 10-year olds were presented with a proportional reasoning task in the context of a game involving probability. Although all age groups failed when proportions involved discrete quantities, even the youngest age group showed some success wh...

Framing of Numerical Quantities

Judgments and decisions are dependent upon the information available. They are also dependent upon the way the information is presented. Message characteristics that make recipients willing to endorse a message have been discussed within the rhetoric tradition and studied empirically in the psychology of persuasion (Cialdini, 2007), advertising (Armstrong, 2010), and health communication (Berry...

Measurements of Electrical Quantities