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Labor Supply and Growth Effects of Environmental Policy under Technological Risk

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Author Info
Christiane Clemens () (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)
Karen Pittel () (ETH Zürich)

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Abstract

This paper analyzes the effects of technological risk on long–run growth when labor supply is elastic and production gives rise to a pollution externality. For the social planner as well as for the market economy we show that the randomness of production as well as the endogeneity of labor supply matter with respect to the equilibrium solution. The direction in which changes in the model parameters as well as changes of policy instruments influence labor supply and growth depends crucially on the volatility of output.

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File URL: http://www.ww.uni-magdeburg.de/fwwdeka/femm/a2008_Dateien/2008_09.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by Otto-von-Guericke University Magdeburg, Faculty of Economics and Management in its series FEMM Working Papers with number 08009.

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Length: 27 pages
Date of creation: Mar 2008
Date of revision:
Handle: RePEc:mag:wpaper:08009

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Related research
Keywords: stochastic growth; pollution; abatement; elastic labor supply;

Find related papers by JEL classification:
Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
D8 - Microeconomics - - Information, Knowledge, and Uncertainty
D9 - Microeconomics - - Intertemporal Choice and Growth

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This page was last updated on 2009-11-10.

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