We study the implications of financial-market imperfections on labor and capital misallocation in China. Financial friction stems from private sectors' credit constraints that limit the efficient use of capital relative to state firms. Our model can jointly explain labor flows out of and capital...

Distributional consequences typically receive limited attention in economic models that analyze the effects of monetary and financial sector policies. These consequences deserve more attention since financial markets are incomplete, imperfect, and economic agents' access to them is often...

This paper examines fungibility as a possible explanation for the missing link between foreign aid and economic growth. The composition of aid plays a crucial role in determining the composition of government spending and, consequently, the magnitude of fungibility and its impact on growth....

The rapid journey from central planning to EU (euro area) membership stress-tested the social learning processes of the Former Transition Economies (FTEs). The desire for a higher standard of living, to be anchored to the West, and to enter the EU, spurred major reform waves and led to the very...

We construct an endogenous growth model that includes a cultural variable along the dimension of individualism-collectivism. The model predicts that more individualism leads to more innovation because of the social rewards associated with innovation in an individualist culture. This cultural...

This paper examines differences in China's ethnic majority and minority patterns of labor force participation and decomposes these differences into treatment and endowment effects using the technique developed by Borooah and Iyer (2005). Population census data are used to estimate...

Is the Chinese growth miracle - a remarkably high growth rate sustained for over twodecades - likely to persist or are the seeds of its eventual demise contained in the policiesthat have boosted growth? For all its presumed flaws, the particular approach tomacroeconomic and structural policies...

Is the Chinese growth miracle - a remarkably high growth rate sustained for over two decades - likely to persist or are the seeds of its eventual demise contained in the policies that have boosted growth? For all its presumed flaws, the particular approach to macroeconomic and structural...

Differences in geopolitical regions of Nigeria are not debatable. However, there is no clearconsensus on the dimension of these disparities. In this paper, claims of geopolitical regiondisparities in labor market outcomes are investigated using survey data from Nigeria between1996-1999...

This paper analyses how governance or institutional quality and tax morale affect the shadoweconomy, using an international country panel and also within country data. The literaturestrongly emphasizes the quantitative importance of these factors to understand the level andchanges of shadow...