Interactions between economic development and financial development are studied by looking at the roles of financial institutions in selecting R&D projects (including for both imitation and innovation). Financial development is regarded as the evolution of the financing regimes. The...

The paper considers the statistical work of the applied mathematician Harold Jeffreys. In 1933-4 Jeffreys had a controversy with R. A. Fisher, the leading statistician of the time. Before this encounter Jeffreys had been developing probability as the basis for scientific inference and using the...

We use a panel of manufacturing plants from Colombia to analyze how the rise in payroll tax rates over the 1980’s and 1990’s affected the labor market. Our estimates indicate that formal wages fall by between 1.4% and 2.3% as a result of a 10% rise in payroll taxes. This...

This paper investigates the effects of the omission of relevant variables from the statistical model on cointegration analysis, proposed by Johansen (1988, 1991). We show that underspecification of the statistical model leads to either failure in detecting cointegration or underestimation of the...

We investigate the enlarging coastal-inland income gap in China during the 1990s, using GMM estimation of a Solow growth model. Disaggregating capital investment by source: public, foreign and private: helps to disentangle the effect of policy from those of geography. The impact of public...

We investigate analytically and via Monte Carlo simulations the effects of the inclusion of irrelevant variables in the statistical model, on the cointegration analysis of Johansen (1988, 1991). We show that overspecifying the statistical model does not affect inference about the cointegrating...

This paper provides a sufficient condition for existence and uniqueness of equilibrium, which is in monotone pure strategies, in games of incomplete information. First, we show that if each player’s incremental ex post payoff is uniformly increasing in its own action and type, and its...

Labor market regulations have often been blamed for high and persistent unemployment in Europe, but evidence on their impact remains mixed. This paper analyzes how labor and product market regulations interact to affect turnover and unemployment. We present a matching model which illustrates how...

The use of artificial regressions to compute the variance of the difference of pairs of panel data estimators that cannot be ranked in terms of efficiency is considered. It is illustrated how it is possible to get (asymtotically) valid estimators of covariance matrices for differences between...

The endogenous technology literature usually treats human capital as proportional to the population level. As a result, it finds a linear relationship between the population size or growth rate and technological improvement. In this paper I introduce human capital investment in an endogenous...