Working Papers
Ordering Renewables: Groundwater, Recycling and Desalination
Optimal recycling of minerals can be thought of as an integral part of the theory of the mine. In this paper, we consider the role that wastewater recycling plays in the optimal extraction of groundwater, a renewable resource. We develop a two-sector dynamic optimization model to solve for the optimal trajectories of groundwater extraction and […]
Read MoreIndirect Inference Based on the Score
The Efficient Method of Moments (EMM) estimator popularized by Gallant and Tauchen (1996) is an indirect inference estimator based on the simulated auxiliary score evaluated at the sample estimate of the auxiliary parameters. We study an alternative estimator that uses the sample auxiliary score evaluated at the simulated binding function which maps the structural parameters […]
Read MorePayment schemes in random-termination experimental games
We consider payment schemes in experiments that model infinite-horizon games by using random termination. We compare paying subjects cumulatively for all periods of the game; with paying subjects for the last period only; with paying for one of the periods, chosen randomly. Theoretically, assuming expected utility maximization and risk neutrality, both the cumulative and the […]
Read MoreIs Our World Going to Get a Whole Lot Smaller?
The surge of oil prices in recent years has led to speculation that rising transportation costs could end the period of dramatic world trade growth–in the words of Rubin (2009), “…Your world is going to get a whole lot smaller.” Using data from China’s Customs Statistics, we examine the impact of oil prices on trade’s […]
Read MorePreferential Trade and Welfare with Differentiated Products
We consider analytically and numerically the welfare tradeoffs inherent in a preferential trade area (PTA) with products differentiated by region of origin. For a small open economy in such a setting, welfare gains are associated with higher trade volumes within the PTA. However, welfare losses are induced by declining tariff revenues on trade with nonmember […]
Read MoreThe Impact of Civil Unions on Hawaii’s Economy and Government
This report provides quantitative and qualitative measures of the impact of same-sex civil unions on the Hawai`i economy, Hawai`i businesses, and the State of Hawai`i’s budget. More specifically, we examine the effect of civil unions on tourism arrivals to Hawai`i; state government revenues and expenditures; employer provision of health insurance to civil union partners and […]
Read MoreThe Employment Effects of Fiscal Policy: How Costly Are ARRA Jobs
The American Recovery and Reinvestment Act was intended to stimulate the U.S. economy and to create jobs. But at what cost? In this paper, we discuss the range of potential benefits and costs associated with counter-cyclical fiscal policy. Benefits and costs may be social, macroeconomic, systemic, and budgetary. They may depend importantly on timing and […]
Read MorePublication: Optimal Management of a Hawaiian Coastal Aquifer with Nearshore Marine Ecological Interactions
We optimize groundwater management in the presence of marine consequences of submarine groundwater discharge (SGD). Concern for marine biota increases the optimal steady-state head level of the aquifer. The model is discussed in general terms for any coastal groundwater resource where SGD has a positive impact on valuable nearshore resources. Our application focuses on the […]
Read MorePublication: Spatial Economic Analysis of Early Detection and Rapid Response Strategies for an Invasive Species
Economic impacts from invasive species, conveyed as expected damages to assets from invasion and expected costs of successful prevention and/or removal, may vary significantly across spatially differentiated landscapes. We develop a spatial–dynamic model for optimal early detection and rapid response (EDRR) policies, commonly exploited in the management of potential invaders around the world, and apply […]
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