Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83118
Authors: 
Brandt, Urs Steiner
Year of Publication: 
2001
Series/Report no.: 
Working Paper, Department of Environmental and Business Economics, University of Southern Denmark 20
Abstract: 
Both Barrett (1991) and Hoel (1991) show that uniform solutions cannot guarantee that the IR constraint is satisfied. This drawback of uniform solutions dramatically reduces feasibility of uniform solutions. However, when uniform reductions are property specified, this conclusion is no longer valid. Compared to Barrett (1991), which proposes a uniform absolute reduction, this paper proposes uniform solutions that are defined as equal percentage reduction compared to some pre-agreement reduction level, in accordance with real world specification. For such a specification, uniform solutions that satisfy IR will always exist, establishing a new, and more positive, view upon uniform solutions.
Subjects: 
Uniform reduction obligations
individual rationality.
JEL: 
Q28
H4
H77
Document Type: 
Working Paper
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