This paper examines how key product-cycle parameters, such as the ease of new product adoption and the pace of product obsolescence, influence North-South wage inequality and the trade pattern. An innovative feature of the paper is in modeling the interaction between endogenous Northern product...

The paper examines foreign aid in the context of a dynamic Ricardian model of trade and development that highlights the role of learning in both the initial adoption of new technologies and products and their eventual transfer from developed to developing countries. When aid is paid as a pure...

This paper deals with the identification and estimation of dynamic games when players’ beliefs about other players’ actions are biased, i.e., beliefs do not represent the probability distribution of the actual behavior of other players conditional on the information available....

We present a simple model motivated by the events in Archie Comics #600 (May, 2009). We demonstrate that under a simple set of assumptions, Archie is better off extending a marriage proposal to Veronica rather than Betty.

Firm-level idiosyncratic policy distortions misallocate resources between firms, lowering aggregate productivity. Many environmental policies create such distortions; in particular, output-based intensity standards (which limit firms' energy use or emissions per unit of output) are easier for...

We construct the ratio of the post-fisc transitory income variance to the pre-fisc transitory income variance of family incomes as a measure of fiscal progressivity in Canada between 1993 and 2008. This ratio can be interpreted as measuring the extent to which the fiscal system attenuates...

In this paper we investigate the relationship between crude oil and gasoline prices and also examine the effect of oil price uncertainty on gasoline prices. The empirical model is based on a structural vector autoregression that is modifiÂ…ed to accommodate multivariate GARCH-in-Mean errors,...