Designing environmental regulations with empirical microparameter distributions: the case of seawater intrusion

Economists have long recognized the problems inherent in the concept of aggregate capital, and have expended considerable effort to develop models with heterogeneous input quality. One such framework is the Putty–clay, or microparameter model introduced by Houthakker (1955), Johansen (1959) and Solow (1962). Phelps (1963), Akerlof (1967), Sheshinski (1967), Stiglitz (1968), and Cass and Stiglitz (1969) studied alternative versions of this general model.