This paper explores the connection between resource abundance and innovation, as a transmission mechanism that can elucidate part of the resource curse hypothesis, i.e. the observed negative impact of resource wealth on income growth. We develop a variation of the Ramsey-Cass-Koopmans model with...

We use a dynamic general equilibrium model to examine hypothetical market reforms in North Korea. We model partial reform, in which producers choose capital allocations across sectors, with the government still fixing total capital. We also consider two full market reform scenarios. In one,...

We use a comprehensive database of sovereign credit ratings (SCRs) from Moody’s, Standard and Poor’s and Fitch for a cross-section of 120 countries from 1986--2009. Using panel data, we find that GDP per capita, the GDP growth rate and the degree of industrialization positively affect...

This paper explores the incentive effects of total central fiscal transfers and its components -- tax rebates and equalization grants -- on provincial tax efforts in China. Our theoretical model predicts negative impacts on provincial tax efforts from both total fiscal transfers and equalization...

China has a long history of taxing agriculture, with special levies on output. Whether farm households are taxed on a lump-sum basis or as a proportion of output is an important issue. This paper develops a theoretical model to understand better the effects of the lump-sum and proportional...

This paper investigates the political economy of military base closure in the United States. The Base Realignment and Closure (BRAC) Act was passed in 1988 in an attempt to insulate base closure and realignment from politic influence. The political pressure to influence the process remains...

Using a panel-model approach, this paper investigates the relationship between the level of taxation and democracy. The dataset covers the period 2002--2008, and includes 51 countries. The study suggests that a significant increase of taxes, without a major negative reaction of taxpayers, can be...