The standard evolutionary explanation for depression is that being emotionally depressed is adaptive. We argue that being depressed is not adaptive (indeed, quite the opposite), but that the threat of depression for bad outcomes and the promise of pleasure for good outcomes are adaptive because...

We construct game theoretic foundations for bargaining in the shadow of a trial. Plaintiff and defendant both have noisy signals of a common-value trial judgment and make simultaneous offers to settle. If the offers cross, they settle on the average offer; otherwise, both litigants incur an...

Religions are organized in a variety of ways. They may resemble an elected autocracy, a parliamentary democracy, or something akin to a monarchy, where heredity plays a primary role. This variation allows for a comparative study of their organization. These differing power arrangements call for...

This paper evaluates the sustainability of large current account imbalances in the era when the Chinese GDP growth rate and current account/GDP exceed 10%. We investigate the size distribution and the durability of current account deficits during 1966-2005, and report the results of a simulation...

This paper studies the association between the current account and real estate valuation across countries, subject to data availability [43 countries, of which 25 are OECD], during 1990 - 2005. We find robust and strong positive association between current account deficits and the appreciation...

This paper introduces two ideas, emotional state dependent utility components (ESDUCs), and evolutionary perfect Bayesian equilibrium (EPBE). Using a simple extensive form game, we illustrate the efficiency-enhancing role of a powerful ESDUC, the vengeance motive. Incorporating behavioral noise...

This paper examines India's development strategy, and to what extent it may be considered a success. It provides a brief history of why and how the strategy was adopted, as well as of its implementation, including the role of initial conditions, such as human capital, geographical location, and...

This paper examines the link between structural change and growth in India. It constructs indices of structural change, and performs a panel data analysis using data for India's 16 major states. It finds that there is one-way positive impact from structural change to growth for the period 2000-...

This paper examines changes in regional inequality in India in the 1990s, using data for 59 of India's 78 agro-climatic regions from the National Sample Survey. It extends the work of Singh et al. (2003) in two ways. First, it allows for differences in baseline growth performance across...

This study provides new evidence on the relationship between finance and economic growth using an innovative dynamic panel threshold technique. The sample consists of 87 developed and developing countries. The empirical results indicate that there is a threshold effect in the finance-growth...