Governments in less developed countries face severe budgetary constraints. Given that public sector employment is a large part of modern sector employment, the government wage bill h as come under increased scrutiny. The central question is how do gove rnment wages compare with those in the...

This paper develops a correlated probit model to describe dichotomous choices that may contain a public-goods component or some other forms of interdependency. The key contribution of the paper is to formulate tests for interdependent behavior among agents. In particular, we examine the...

This paper uses three different approaches to investigate whether the declining provision of public capital is a major cause of declining labor productivity. The juxtaposition of approaches removes the variability in estimates due to dissimilar variable definitions and econometric methodologies....