We apply the co-evolutionary model of growth of Desierto (2008, 2005) to the process of integration to global/regional markets. Before markets are actually opened, firms start anticipating changes in the interest rate and play a first-stage (evolutionary) game whereby the quality of domestic...

The centre of global economic activity is shifting rapidly towards Asia, driven by a combination of the economic dynamism of China, India and other middle-income Asian countries, and sluggish growth in the OECD economies. The rapid growth and rising global prominence has raised a range of major...

The Philippines now appears well poised for an economic take off and sustained long-­run growth. It recently posted an impressive 6.4% growth in the first quarter of 2012, up from 4.9% in the same period last year, has experienced a surge in merchandise exports, and is on the brink of an...

We propose evolutionary dynamics to show how rules converge into norms. Individuals play a game of upholding or rejecting a rule, and the more they uphold the rule, the more it becomes established as a norm. We find that when individuals are rational, the initial state determines whether the...

We show that the most important barriers to investment and growth in the Philippines are structural and institutional problems that are characteristic of limited access societies, which can be more effectively and efficiently overcome by prioritizing ‘first-order’ market reforms that...

We show how cheating in illegal gambling can be sustained in equilibrium, even when gamblers are aware of it. Not only is cheating profi?t-maximizing for operators, but it can also be utility-maximizing if it provides gamblers the opportunity to engage in other related activities that generate...

This paper questions the conventional argument that the existence of a black market provides negative externalities in the form of foregone tax revenues that could otherwise be used to increase social welfare. It is not enough to estimate the size of the black market, one should also show how...