We develop and calibrate a model where di¤erences in factor en- dowments lead countries to trade di¤erent goods, so that the existence of international trade changes the sectorial composition of output from one country to another. Gains from trade re ect in total factor produc- tivity. We...

In this paper, I discuss the reasons for Costa Rica's economic performance over the last quarter of a century. Three complementary sets of policies (investments in human capital, careful stabilization, and an intelligent and aggressive integration into the world economy) explain the successful...

This paper studies the long-run impact of HIV/AIDS on per capita income and education. We introduce a channel from HIV/AIDS to long-run income that has been overlooked by the literature, the reduction of the incentives to study due to shorter expected longevity. We work with a continuous time...

We study the macroeconomic and social effects of Universal Basic Income (UBI) programs in a developing economy, comparing them with policies that condition cash transfers on household characteristics (CCT). We construct a dynastic heterogeneous-agent model with human capital investment and...

This paper applies an endogenous lobby formation model to explain the extent of trade protection granted to Brazilian manufacturing industries during the 1988-1994 trade liberalization episode. Using a panel data set covering this period, we find that even in an environment in which a major...