This paper develops a one sector, two-input model with endogenous human capital formation. The two inputs are two types of skilled labor: engineering, which exerts a positive externality on total factor productivity, and law, which does not. The paper shows that a marginal prospect of migration...

This paper develops a one sector, two-input model with endogenous human capital formation. The two inputs are two types of skilled labor: “engineering,” which exerts a positive externality on total factor productivity, and “law,” which does not. The paper shows that a marginal prospect...

Demographic transition theory is developed highlighting cultural transmission pattern as key driver. Individuals maximize cultural fitness, i.e. rate of own cultural type absorbtion by future generations. With low population density, one's culture can be picked up only by own children, thus...

This paper develops a quantitative model of trade, military conflicts, and defense spending. Lowering trade costs between two countries reduces probability of an armed conflict between them, causing both to cut defense spending. This in turn causes a domino effect on defense spending by other...

This paper develops a quantitative model of trade, military conflicts, and defense spending. Trade liberalization between two countries reduces probability of an armed conict between them, causing both to cut defense spending. This in turn causes a domino effect on defense spending by other...

Many people emigrating abroad eventually return home. Yet, little is known about the returnees: who are they and how do they compare to those who did not return? How does their decision to return depend on economic situation at home? In this paper, I empirically analyze the propensity of US...

US-educated Indian engineers played a major role in the establishment of the “Silicon Valley of Asia” in Bangalore. The experience of India and other countries shows that returning well-educated emigrants, despite their small numbers, can make a difference. This paper builds a model of...

This paper analyzes international high-skilled migration caused by financial frictions in educational market. I develop a model of learning in which acquisition of skill is only possible through personal interaction with a skilled individual; the income of the skilled is sensitive to financial...

In this paper, I build on Blackmore (2000) to propose a formal theory of demographic transition (fertility decline) and associated growth of the stock of knowledge. The novelty of this theory is to entirely exclude private consumption from the objective function of the decision makers, and to...