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Seminar: Propagation of carbon price shocks through the value chain: a mean-field game of defaults
Seminar: Propagation of carbon price shocks through the value chain: a mean-field game of defaults
Speaker: Peter Tankov, ENSAE ParisTech Abstract: We develop a mean-field game framework to study carbon pricing in a multi-sector economy with defaultable firms. In each sector, firms produce a homogeneous good and choose inputs—labor, emissions, and intermediate goods—while taking endogenous prices as given and optimally deciding default timing. The economy is modeled as a system […]