Increasing returns of the international kind as opposed to the usual national kind do not justify subsidies by a small country. Copyright 2002 by The London School of Economics and Political Science

In the context of a segmented economy in which the urban unemployed subsist in informal-sector activities, Earl Grinols (1991) has recently questioned conventional wisdom whereby foreign investme nt with repatriated earnings is necessarily immiserizing for the host country. In this paper, the...

The paper introduces labor supply considerations, and labor earnings uncertainty into a parent-child framework in the presence of 'merit goods.' The author investigates the implications of various parental bequest rules on the effort decisions of the offspring, where the parent cannot perfectly...