We propose a mean-field game (MFG) approach to study the dynamics of spatial agglomeration in a continuous space-time framework where trade across locations may follow a broad class of static gravity models. Forward-looking intertemporal utility-maximizing agents work and migrate in a two-dimensional geography and face idiosyncratic shocks. Equilibrium wages and prices depend on their common...

We study an n-country pollution linear-quadratic differential game in which countries differ in their sensitivity to environmental damages while contributing to a common pollution stock. Such heterogeneity implies that countries value environmental quality differently and disagree on the desirable long-run environmental outcome. Consistently with the rising literature on carbon dioxide removal (CDR), we also allow...

We develop a unified dynamic game-theoretic theory of institutional change that delivers three common equilibrium outcomes as limiting cases: Lipsetian transition to democracy, transition through popular revolution, and permanent autocracy. An impulse-control framework captures both the citizens’ revolutionary option and the elites’ strategic choice of voluntary democratisation, with human capital as the unique endogenous state...

In order to investigate strategic interactions between a "global north" and a "global south" we introduce a two-country extension of the model in Golosov et al. (2014). We consider different transfers between the two regions, including transfers that can improve the abatement technology. Our model can accommodate several kinds of heterogeneity, including in preferences, time...

While Ellis, Reid, and Kramer's life history framework is convincing in explaining individual variation in life history strategies, it has certain limitations, which we discuss–drawing notably on the economic theory of fertility choice. In particular, we suggest that ambient cues to extrinsic mortality alone are not sufficient to trigger sustained net fertility decline.

We propose a mean-field game (MFG) set-up to study the dynamics of spatial agglomeration in a continuous space-time framework where trade across locations may follow a broad class of static gravity models. Forward-looking intertemporal utility-maximizing agents work and migrate in a twodimensional geography and face idiosyncratic shocks. Equilibrium wages and prices depend on their common...

This special issue brings together five papers selected for their technical depth and contribution to contemporary economic research. The collection comprises three theoretical contributions and two at the theory-data interface, addressing questions from liquidation design in financial networks to spatial growth, incomplete-market equilibria, labour search with endogenous unemployment-insurance (UI) take-up, and internet-access complementarities.The contributions share...

We study optimal firm behavior under irreversible pollution risk for a general class of models with irreversible local pollution. Irreversibility comes from the decay rate of pollution dropping to zero above a pollution level featuring non-convexity. In addition, the firm can instantaneously move from a reversible to an irreversible pollution mode, following a Poisson process....

We investigate how the relationship between capital accumulation and pollution is affected by the source of pollution: production or consumption. We are interested in polluting waste that cannot be naturally absorbed, but for which recycling efforts aim to avoid massive pollution accumulation with harmful consequences in the long run. Based on both environmental and social...

Conventional agriculture not only neglects but also harms the ecosystem services provided by biodiversity, inducing a negative feedback loop. In a theoretical inspired by agroforestry (“agriculture with trees”), a common agroecological practice in developing countries, we highlight how the choice between expanding agricultural land and retaining forest land is shaped by the bidirectional relationship between...