While technologies and policy fundamentals are presumably different internationally, inducing differences in growth rates, capital mobility can be a powerful force in equalizing output growth rates across countries. The paper provides some indirect evidence in support of this effect. In the...

Pricing costs and information problems are introduced into a framework with consumer-producers, economies of specialization, and transaction costs, to predict the endogenous and concurrent evolution of the division of labor and of information concerning economic organization acquired by society....

This paper studies the relationship between infrastructure expenditure and endogenous growth generated by spontaneous evolution of division of labor. It identifies the necessary condition for infrastructure expenditure to take place and its equilibrium time path. Dynamic equilibrium shows that...

Comparative static effects of varying the wealth level of a risk-averse agent in a moral hazard setting with limited liability constraints are investigated. There are two principal opposing effects of increasing wealth: the incentive effect, which allows stronger punishments for poor...

The U.S. Immigration Reform and Control Act of 1986 (IRCA) increased the monitoring of illegal employment and fined employers who hire undocumented immigrants. Since these provisions tax immigrant wages, it might be expected that the immigrant-native wage gap would increase after IRCA. This...

Many of the problems of privatization in developing countries result from the lack of information about the situation of the economy and from the lack of determination on their path of privatization. This paper addresses the lack of information by presenting a theory of incomplete privatization...

This study investigates the case for an export ban on intermediate goods which generate environmental damage. Since export restrictions on intermediates have long been advocated as a method of stimulating domestic industries in developing countries, we consider whether the case for an export ban...

In developing economies a firm's strategy is directed more often at the government than at other competing firms. As an initial step towards modeling such interactions this paper considers a situation where a government confronts a monopoly. The latter chooses price and maximizes profit and the...

Migration has become a major concern of European development policies. By improving socio-economic and political conditions through development cooperation, a reduction of South-North migration flows is envisaged. This new approach is examined by analyzing the causes of asylum migration from...