This paper studies the influence of productivity, pollution sensitivity, and adaptive capacity on optimal mitigation and adaptation in a two country global pollution model. We investigate the effects of changes of these parameters on the allocation of emissions, adaptation expenditures, and...

This paper discusses environmental policies in response to foreign direct investment (FDI) in a symmetrie two-country setting, where firms' behavior affects government policy decisions. We show that two alternative equilibria with FDI are possible: (i) one with unilateral FDI, where one firm is...

Building on a micro-founded model of a two region-world economy in the tradition of the new open economy literature, this paper analyses the strategic interaction of large wage-setters and the central bank when switching from a regime of uncoordinated national monetary policies to a monetary...

In einer Währungsunion besteht für die Mitgliedsländer keine Möglichkeit mehr, durch eine vorübergehende Störung verursachte binnenwirtschaftliche Ungleichgewichte mittels Anpassung des nominalen Wechselkurses zu korrigieren. Wenn die supranationale Geldpolitik unionsweiten, die nationale...