Standard economic theory suggests that capital should flow from rich countries to poor countries. However, capital has predominantly flowed to rich countries. The three essays in this dissertation attempt to explain this phenomenon. The first two essays suggest theoretical explanations for why...

This paper develops an evolutionary theory of adaptive growth, understood as a product of structural change and economic self-transformation, based upon processes that are closely connected with but not reducible to the growth of knowledge. The dominant connecting theme is enterprise, the...

This paper investigates the possibility of endogenous fluctuations in the international distribution of economic activities in the presence of increasing returns, monopolistic competition, trade and convex adjustment costs without allowing for any local productive externalities. Using a...

The purpose of this paper is to study the long run evolution of a world economy (divided into a North and a South) and to re-evaluate some conventional ideas regarding the inter-relation between the two economies. Here, a technologically backward South adopts the Northern technology by importing...

This paper proposes an alternative way of looking at the issue of brain drain. It tries to bring into focus the crucial role of repatriated earnings of emigrants that can potentially help higher absorption of skill and sustain a higher level of skill differentiation in the domestic economy. A...

The paper focuses on the theoretical modifications of the concept of external economies built by Marshall. The history of external economies was at its crossroads in the thirties, when the Symposium on Increasing Returns took place in Cambridge. Sraffa formulated the main criticism against...

This paper focuses on the influence of the influence of the opening of a market of allowances, such as the European Union Emission Trading Scheme, on the general equilibrium of an economy. Assuming there existed an equilibrium before the opening of this new market, we describe the changes in the...

In this paper we prove an index formula for production economies with externalities. We allow for non-convexities in the production sector and set the firms behavior according to general pricing rules. We derive as corollaries existence of a general equilibrium in such a setting.

The purpose of the paper is to introduce a tighter definition for the marginal pricing rule. By means of an example, we illustrate the improvements that one gets with the new definition with respect to the former one with the Clarke's normal come.

Economic analyses of pests typically assume damage is either additively separable from pest free yield or proportional to it. This paper describes the ecological assumptions required for additive and proportional damage functions to demonstrate that both specifications are reasonable. Ecological...