An aging population in modern societies has put stress on public pension systems. To prevent social security deficits from increasing to unbounded levels of debt we focus two policies: reducing the generosity benefits, determined by government, and postponing effective retirement age, chosen employees. atomistic employee would disregard effect his decision retire as soon possible. Conversely, an ideal farsighted agency considering all current future employees postpone retirement, thereby...

This paper studies a transboundary pollution problem between two neighbour regions as dynamic game. These do not only share an environmental but they are also engaged in interregional trade. A good produced one region is traded to the other which uses it input. intermediate supplied by former and demanded latter. The supply-demand scheme determines price production of good. Thus total fixed both regions, emissions pollutants determined by-product. Cooperation cuts down trade, consequence...

This paper develops a trade model for technologically leading country and developing that exploits renewable natural resource. Technology diffuses from the technological leader to through foreign direct investment (FDI). Alternatively, innovative activities can also be carried out in economy. We prove existence uniqueness of an equilibrium path along which both countries grow at same rate, maintaining natural-resource stock constant level. The saddle-point property this is proved sensitivity...

We analyze a general R&D-based endogenous growth model with growth-essential natural resource. The economy comprises two separate sectors, final output and R&D, both directly or indirectly dependent on the Because resource is exhaustible it an essential productive input, increasing returns to scale manmade inputs are compatible nonexplosive sustained growth. instability problem usually associated overcome thanks existence of imperfect markets in decentralized economy. find admissible...

Abstract The literature featuring game–theoretical models aimed at explaining the effect of status concerns on voluntary provision a public good is generally focused snob agents, driven by desire for exclusiveness. However, social context highlights that can give rise to desire, in some individuals be different from “common herd,” and others conform with other people. We analyze two‐player game under two settings: standard case positional players (PP s ), versus which player faces conformist...

Consumption satisfaction depends on other factors apart from the inherent characteristic of commodities. Among them, positional concerns are central in behavioural economics. Individuals enjoy returns ranking occupied by consumed item. In public good, agents obtain their relative contribution. We analyse how preferences for voluntary contribution to a good favour players' contributions and could lead social welfare improvements. A two-player game is analysed, first one-shot later simple...

This paper studies the dynamic interaction between a representative employer and government, where both play roles in providing retirement pensions to group of retirees with heterogenous wages. Public pension expenses drive evolution public debt, which can be positive or negative (a Social Security trust fund) long run. The relative sizes private affect income distribution. discriminates favor low-paid employees, while provided pension, is assumed integrated Security, counteracts this tilt...

Under a General Equilibrium model of International Trade, industrialized countries export capital intensive goods, while developing natural resource goods. Biodiversity is viewed as the number species conserved producing these Higher conservation increases demand, but lowers goods supply. Consumers value biodiversity weighted sum all different species. If producers both conserve more species, South's terms trade will rise in relation to North's. Furthermore, we believe that switch consumer...