We thank without implicating Kerry Smith, Roger von Haefen, Chris Timmins, and several workshop particpants for valuable discussions and comments on aspects of this project. Empirical studies of market activities draw on an elegant and coherent body of theory that describes household and firm interactions in the market place. Price taking households purchase goods produced by firms that compete to maximize profits under a variety of market power conditions. Theory provides behavioral predictions for households and firms as well as

In this paper we consider the problem of outlet pricing and location in the context of unobserved spatial demand. Our analysis constitutes a scenario wherein capacity-constrained firms set prices conditioned on their location, demand and costs. This enables firms to develop maps of latent demand patterns across the market in which they compete. The analysis further suggests locations for additional outlets and the resulting equilibrium effect on profits and prices. Using Bayesian spatial statistics, we apply our model to seven years of data regarding apartment location and prices in Roanoke, Virginia. We find spatial covariation in demand to be material in outlet choice; the 95 % spatial decay in demand extends 3.6 miles in a region measuring slightly over 9.5 miles. We further find that capacity constraints can cost complexes upwards of $100 per apartment. As predicted, price elasticities and costs are biased downward when spatial covariance in demand is ignored. Costs are biased upwards when ignoring capacity constraints. Using our analysis to suggest locations for entry, we find that a proper accounting of spatial effects and capacity constraints leads to an entry recommendation that improves profitability by 66 % over a

We estimate the effects of neighbors ’ deforestation actions on individuals’ deforestation decisions in Costa Rica. We find evidence that neighbors ’ effects are positive and significant. To address simultaneity and spatially correlated unobservable factors, we instrument for neighboring deforestation using neighboring land parcel characteristics. Under the presence of interactions, local forest levels and the country’s forest spatial pattern change. Policies that promote agricultural development or forest conservation in a specific area also affect deforestation rates in non-targeted neighboring areas. Moreover, positive interactions create conditions for multiple equilibria. This could affect the country’s stock of forest and could justify intervention to reach Pareto dominant deforestation outcomes.

We estimate the effects of neighbors ’ deforestation actions on indi-viduals ’ deforestation decisions in Costa Rica. To address simultane-ity and the presence of spatially correlated unobservable factors, we instrument for neighboring deforestation using topographic and bio-logical characteristics of neighboring parcels. We find evidence that neighboring deforestation significantly raises the probability that an individual clears a parcel. This finding is important for projecting the amount and the spatial pattern of forest. It implies that policies which promote agricultural development or forest conservation in a specific area also affect deforestation rates in non-targeted neighbor-ing areas. Moreover, positive interactions create conditions in which multiple equilibria might arise. This could justify intervention to reach Pareto dominant outcomes.

permission of the authors.

reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. ∗ Corresponding author.

Climate change represents a formidable challenge for mankind going forward. It is important to understand its effects. In this thesis I study how people adopt to climate change and argue that these responses could go a long way towards mitigating the effects of climate change. I show that in some cases accounting for such adaptation could completely reverse the negative effects of climate change. In the first chapter of my thesis I consider the general impact of adaptation without focusing on a particular adaptation mechanism studying mortality in Russia. Using regional monthly mortality and daily temperature data, I estimate a flexible non-parametric relation between weather and mortality. I find evidence that regions are better adapted to temperature ranges they experience more frequently. In particular, damages from the high heat are smaller in regions where the average summer temperature is higher and damages from cold are lower in regions where winters are usually more severe. On the basis of these estimates I propose a novel way to account for adaptation to climate change without restricting attention to one particular channel. Namely, I assume that if

bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Produced by the Research Support Team

Abstract not found

bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Produced by the Research Support Team