We show that incentive efficient allocations in economies with adverse selection and moral hazard can be determined as optimal solutions to a linear programming problem and we use duality theory to obtain a complete characterization of the optima. Our dual analysis identifies welfare effects associated with the incentives of the agents to truthfully reveal their private information. Because the...

This paper intends to provide an evaluation of where the economic research on happiness stands and in which interesting directions it might develop. First, the current state of the research on happiness in economics is briefly discussed. We emphasize the potential of happiness research in testing competing theories of individual behavior. Second, the crucial issue of causality is taken up illus...

Bergstrom showed that a necessary condition for a Pareto optimum with non-paternalistic altruism is classification as a selfish Pareto optimum. This paper shows that Bergstrom’s result does not generalize to the benefit-cost analysis of generic changes in public goods. There may exist good projects that will be rejected by a selfish-benefit cost test, a selfish test error. Selfish test error is...

This paper deals with the problem of incentive mechanism design in non-convex production economies when production sets and preferences both are unknown to the designer. We consider Nash-implementation of loss-free, average cost, marginal cost, voluntary trading, and quantity-taking pricing equilibrium allocations in economies involving increasing returns to scale or more general types of non-c...

Integrated assessment models of climate change typically analyze the case of a doubling of atmospheric CO2.over the pre-industrial concentration of about 270 ppm. This is a serious shortcoming since under a scenario in which all accessible fossil fuels are burned, atmospheric CO2 concentrations will more than quadruple. We introduce an analytical framework that endogenously accounts for potenti...

This paper argues that life satisfaction data can be used to value natural disasters. We discuss the strengths of this approach, compare it to traditional methods and apply it to estimate and monetize utility losses caused by floods in 17 OECD countries between 1973 and 2004. Using combined cross-section and time-series data, we find a negative impact of floods on life satisfaction that is size...

We consider random assignment of multiple indivisible objects. When each agent receives one object, Bogomolnaia and Moulin (2001) show that the probabilistic serial mechanism is ordinally efficient, envy-free and weakly strategy-proof. When each agent receives more than one object, we propose a generalized probabilistic serial mechanism that is ordinally efficient and envy-free but not weakly s...

The Efficient and Fair Approval of “Multiple-Cost – Single-Benefit” Projects under Unilateral Information This paper focuses on indivisible multiple-cost–single-benefit projects that must be approved by the government. A simple mechanism is proposed that ensures an efficient and fair implementation of such projects. The proposed mechanism is appropriate for a unilateral information structure: t...

إ ةيرهجملا جماربلا لمشي اذهو ،ةيرورملا ةآرحلا ةاآاحم جمارب روطت يف مهاس ةيتامولعملا ايجولونكتلا يف ريبكلا مدقتلا ن ) Microscopic ( ، نلا ىلع بلطلا ةاآاحم اًضيأ لمشي نايحلأا ضعب يفو ، تاعطاقتو قرط نم اهيف امب لقنلا ةموظنم ةاآاحمب حمسيل يللآا بساحلا تاقيبطت قاطنو لق . ةيرهجملا ةيرورملا ةآرحلا ةاآاحم جمارب نيب نراقتو عجارت ةقرولا هذهو ) Microscopic ( ةيلومشلاو ) Macroscopic ( فلاتخلاا هجوأ ىلع ةزآر...

The rice (Oryza sativa) dwarf mutant d61 phenotype is caused by loss of function of a rice BRASSINOSTEROID INSENSITIVE1 ortholog, OsBRI1. We have identified nine d61 alleles, the weakest of which, d61-7, confers agronomically important traits such as semidwarf stature and erect leaves. Because erect-leaf habit is considered to increase light capture for photosynthesis, we compared the biomass a...