In this paper the direction of the long-run migration incentive in the presence of closed borders and the long-run welfare effects of a regime change from ’autarky’ to ’free permanent migration’ are studied. A difference in birth-country specific fertility rates is treated as the final...

This paper analyzes a finitely repeated bargaining game with asymmetric information. It gives a tight characterization of the equilibrium path and the equilibrium payoffs of all sequential equilibria satisfying a weak Markov property. The method used allows for arbitrarily many different types...

We test the hypothesis of a negative long-term trend and/or a structural break in total factor productivity (TFP) after the first oil price shock for West German manufacturing industries within an econometric model based on a flexible cost function with capital as a quasi-fixed factor. After...

This paper develops a simple, incentive compatible, allocation mechanism by means of which both polluters and pollutees will reveal their preferences so that the government can determine the Pareto optimal pollution level. The mechanism involves a combination of the Pigou tax and the Clarke tax....

Combining debt reduction with halting deforestation seems to be an attractive way of solving two urgent global problems at the same time at hardly any cost. But this view may be overly optimistic. What are the advantages and the drawbacks of debt-for-nature swaps? Are there any better alternatives?

This paper derives sufficient conditions for the time-consistency of optimal fiscal policy in a small open economy. Results depend critically on the debt instruments used by the government. If the government employs only conventional debt, a sufficient condition for time-consistency is that the...

Countertrade consists of bilateral agreements (usually) between Western industrial enterprises and government agencies or state-owned enterprises in developing countries (LDCs) and centrally planned economies (CPEs), whereby sales of goods by the western exporter are linked contractually to the...