She works in microeconomic theory, mainly with Paul Klemperer, developing the implications of a connection between tropical geometry and economics. This connects with competitive equilibrium for indivisible goods, matching theory and auction design.
She also works in environmental economics, considering the question of climate policy, using applied decision theory as well as more quantitative modelling.
The Equilibrium Existence Duality: Equilibrium with Indivisibilities & Income Effects
Department of Economics Discussion Paper Series
We show that, with indivisible goods, the existence of competitive equilibrium fundamentally depends on agents’ substitution effects, not their income effects. Our Equilibrium Existence Duality allows us to transport results on the existence of competitive equilibrium from settings with transferable utility to settings with income effects. One consequence is that net substitutability—which is a strictly weaker condition than gross substitutability—is sufficient for the existence of competitive equilibrium. We also extend the “demand types” classification of valuations to settings with income effects and give necessary and sufficient conditions for a pattern of substitution effects to guarantee the existence of competitive equilibrium.
To Build or not to Build? Capital Stocks and Climate Policy
Applying climate policy in practice means considering capital stocks: some assets will pro¬duce pollution whenever they are used, and some will not. Therefore long-term abatement plans should influence current investment. Moreover, newer technologies exhibit learning-by-doing in the deployment of associated infrastructure. We investigate these ideas from both theoretical and numerical perspectives. An increasing carbon tax will reduce investments in assets that pollute, and so reduce emissions in the short term: our “irreversibility effect”. We also show that the optimal innovation subsidy increases with the deployment rate: our “acceleration effect”. Considering second-best settings, we show that, although carbon taxes achieve stringent policy targets more efficiently, subsidies to the “renewables” sector deliver higher welfare when policy targets are more mild. Revised February 2019
Infrastructure, Clean and Dirty Energy Inputs, Renewable Energy, Stranded Assets, Carbon Budget, Climate Change Policies, Green Paradox
SSRN Electronic Journal
Understanding Preferences: 'Demand Types', and The Existence of Equilibrium with Indivisibilities