This paper studies the effects of capital and labor mobility on real wages across Mexican states for the period 1997-2006. Employing dynamic panel data methods, we find: (1) strong positive effects on real wages from foreign direct investment (FDI) and from migration; (2) domestic and foreign...

This paper examines the effects of intra-industry imports on total factor productivity (TFP). Employing a new sample of 25 Mexican manufacturing industries with annual data from 1984 to 2000, interesting panel data results emerge. First, we find the positive impact of intra-industry imports on...

A smaller than 1 Tobin's q has been frequently observed for the postwar U.S. economy. In theory, Tobin's q less than 1 would discourage investment. However, actual capital stock has grown during this period. This paper proposes inflation besides Schumpeterian innovation as an explanation for...

The paper investigates the relevance of the exchange rate on the reaction function of the central banks of 24 emerging market economies for the period 2000Q1 to 2015Q2. This is done by first employing fixed-effects ordinary least squares and then system generalized method of the moments...

This paper makes two contributions to the literature on terrorism: 1) It presents a model that explains the cyclical characteristics of terrorist attacks, and 2) It improves on the existing theoretical cyclical models since it takes explicitly into account terrorists’ motivations and...

This paper develops a simple two-country model in which each economy consists of two sectors: a competitive non-tradable sector and an oligopolistic tradable sector. We investigate two related issues that arise in response to trade liberalization. First, we examine the linkage between trade...

Ramsey's model is extended to three possible scenarios of conflicts in dual-population lands: partition, federation and civil war. The federally utility-maximizing consumption-growth rate in a strictly political federation might be lower than that under partition for the wealthier and more...

We analyse a dynamic model linking terrorist activities to popular support through a recruitment mechanism. It is shown that anti-terrorism policies focusing on liberal ideals (reducing repression, increasing economic opportunity) are effective at abating recruitment, thereby affecting the...