This paper develops a model to study the effects of foreign aid on the creation and distribution of wealth in the recipient country. It considers three types of foreign aid: permanent grants to all individuals, temporary grants to uneducated workers, and foreign aid in the form of low interest...

This paper develops a general equilibrium model with transaction costs and endogenous and exogenous comparative advantages. The governments are allowed to choose between tariff war, tariff negotiation, and a {\it laissez faire} regime. It shows that the level of the division of labor and trade...

In an imperfectly competitive economy, a continuum of equilibria at the firm level exists under certain analytical conditions (Ng 1986). Extending the earlier analysis of a representative firm, this paper shows that even if the condition for a continuum of equilibria is not exactly satisfied,...

A perfect-competition model is developed to analyze duality in specialization and technology such as in the men¡¯s clothing industry, an industry with highly seasonal nature of the business cycle. We show that when the market fluctuation is large enough, some firms will specialize in one...

It is well-known that if the required number of military personnel is large, paying the soldiers their hire may involve very high taxes. While conscription involves the inefficiency and unfairness of violating free choice, it may save significant distortionary costs of taxation. It is not...

Ng & Ng (2003) provide a qualified support for Buchanan's (1991, 1994) hypothesis on work ethics by showing that a decrease in preference for leisure (a higher work ethics) by an individual benefits her trading partners by improving the terms of trade of the latter. Moreover, the higher the...