I construct a model of an asset market subject to search frictions, in an environment where both investment and asset liquidity are determined endogenously. This provides a natural framework to analyze the interaction between capital reallocation and liquidity in response to aggregate shocks, which I assess quantitatively. The search model of capital reallocation exhibits strong internal propag...

Assessing the performance of management is central to natural resource management, in terms of improving the efficiency of interventions in an adaptive-learning cycle. This is not simple, given that such systems generally have multiple scales of interaction and response; high frequency of nonlinearity, uncertainty, and time lags; multiple stakeholders with contrasting objectives; and a high deg...

Sustainable development requires economic development without endangering biodiversity, without exploiting natural resources too fast and without excessive pollution. The question is if these aims can be realized at the same time and what are the options for substitution between different types of capital. The difference between the notions of weak and strong sustainability revolves around the ...

Recent empirical research has shown that income per capita in the aftermath of natural disasters is not necessarily lower than before the event. In many cases, income is not significantly affected and surprisingly, can even respond positively to natural disasters. Here, we propose a simple theory based on the neoclassical growth model that explains these observations. Specifically, we show that...

This paper presents a new framework for human capital measurement. The generalized framework can (i) substantially amplify the role of human capital in accounting for cross-country income di¤erences and (ii) reconcile the existing con‡ict between regression and accounting evidence in assessing the wealth and poverty of nations. One natural interpretation emphasizes di¤erences across economies i...

The wetlands of the Gulf Coast region of the United States are under pressure from relative sea level rise and subsidence pressures that threaten to alter fishery breeding grounds and increase expected damage from stochastic storm events, among other issues. Barrier islands, marshes, and swamps are thus forms of natural capital that serve both an intermediate role in supporting fishery stocks, ...

Valuation ultimately refers to the contribution of an item to meeting a specific goal or objective. Conventional economic valuation is based on the goal of allocative efficiency. But other social goals may be equally, if not more, important. For example, the goals of social fairness and ecological sustainability have been identified as being at least of the same level of importance as allocativ...

Work at the interface of ecology and economics has inspired a major transformation in the way people think about the environment. Increasingly, ecosystems are seen as capital assets, with the potential to generate a stream of vital life-support services meriting careful evaluation and investment. We first present the concepts underpinning the ecosystem services framework (ESF), laying out the s...

The authors investigated the effect of founders’ human capital on the performance of their small firms. In our model, founder human capital had two dimensions: (1) level of education and (2) industry managerial experience. The authors hypothesized that higher levels of founder education and more years of founder industry managerial experience led to better firm performance. A survey of founder-...