Night lights could be a valuable proxy of economic activity at the subnational level when GDP data are lacking or of poor quality. Supplementing Henderson et al.’s (2012) analysis at the national level, we assess the stability of the elasticity of GDP with regard to night lights across regions...

Developing countries are constrained in financing current account deficits as real capital mobility is still far from perfect. At the same time, capital flows to these countries proved to be extremely volatile. The paper argues that the long-term problem of "too little" should not be confused...