We study domestic entry into an established durable good industry under imperfect information. Prior to making a costly entry decision, entrepreneurs observe their true type profitability only with some (common) noise. We consider policy when the government has finer information than firms about...

The study of dynamic strategic behavior in international trade environments with imperfect factor markets (unions) yields significantly different policy implications compared to those that obtain under static settings. We find that contrary to static equilibria, the equilibrium of our model...

We develop a model of economic development in which culture and technology interact to devermine savings, investment, and growth. Investment is assumed to involve intermediation or other costs that may, in any period, result in either of two equilibria for the savings rate. At the good...

This paper presents a geographical theory of location and interregional trade. Location is treated as an endogenous variable by firms, consumers and perfectly mobile workers in a two-sector economy. Space plays a central role owing to transportation costs, market access, and distance from...

This paper studies the interactions between electoral considerations and the imposition of price controls by opportunistic policymakers. The analysis shows that a policy cycle emerges in which price controls are imposed in periods leading to the election, and removed immediately afterwards. The...

Reforming economies have typically placed little attention on the impact of illegal activities on the success of reform/stabilization packages and optimal policy design. This paper aims at developing a framework in which to assess an economy’s response to alternative stabilization/reform...

The increase in the U.S. public debt over the past twelve years raises questions about its implications for investment and economic growth. This paper places these developments within an international and historical context and quantitatively examines the implications of various measures of the...

We develop an overlapping generations model of a developing economy in which ‘culture’ and technology interact to determine savings, investment and growth. Investment is assumed to involve intermediation or other costs which may, in each period, result in either of two stable equilibria for...