This paper explores the similarity and differences between the credibility problem of monetary policy and the under-investment problem of price regulation. In both cases reputational solutions are possible provided that the policymaker is sufficiently far-sighted. But even if regulators are far-sighted, this solution to the investment problem is undermined if capital depreciates slowly. Flexibl...

We analyze the efficient subsidy for durable good technologies. We theoretically demonstrate that a policymaker faces a tension between intertemporally price discriminating by designing a subsidy that increases over time and taking advantage of future technological progress by designing a subsidy that decreases over time. Using new empirical estimates of household preferences for residential so...

PBE Type i: Neither default nor political crisis If V ≤ χL, the costs of default are always larger than the costs of servicing the debt even for the benevolent government. Then in equilibrium, the government proposes to service the debt, which is accepted by the representative agent. Hence the debt is repaid and political crisis is avoided. Neither the benevolent government nor the self interes...

The Brazilian Paulo Vanzolini is one of the leading herpetologists worldwide. Besides his publications as a zoologist and his activities as a former museum curator and policymaker, Vanzolini pursued a long-life career as a musician and contributed to many different fields such as biostatistics, biogeography and the history of science. The paper analyzes his historical contributions to a key cha...

This paper examines performance versus process standards modeling the variability of industry-level compliance and therefore food safety. Monte Carlo simulations are conducted manipulating four factors: the variances of input use of efficient and inefficient firms, the proportion of inefficient firms in the industry and the policymakers' level of risk aversion. Results suggest that process stan...

Pareto improvements that require no information about individual characteristics are analyzed. Initially, equilibrium must be production inefficient. After the policy change, consumer prices differ from producer prices, but allocations, although second-best, are Pareto superior and production efficient. Policy implementation is modeled as a dynamical system that governs aggregate consumer wealt...

Labeling of genetically modified (GM) foods has increasingly become a topic at the consumer and policymaker level. Using an online survey that included conjoint analysis experiment, preference for GM labeling on both fresh tomatoes tomato plants was evaluated. Retailer (farmers market, grocery stores, mass merchandisers) sales quantity sold were simulated to examine impact introducing as well c...

INTRODUCTION Dutch policy regulations require outcomes research for the assessment of appropriate drug use and cost-effectiveness after 4 years of temporary reimbursement. We investigated whether outcomes research reduced policymaker uncertainty regarding the question whether the costs are worth public funding. METHODS Our cohort study included 139 patients with relapsed/refractory multiple m...