The Eurozone recent crisis has shown how balance of payments problems in less developed European Monetary Union (EMU) member countries can affect EMU trading partners, spreading the crisis to a larger group of countries. This paper introduces a three-country dynamic general equilibrium model to...

This paper aims to highlight key limitations of “The Economist” magazine's Big Mac Index (BMI). The Economist markets the BMI as a tool to determine valuation of currencies. This paper shows that the BMI is a misleading measure of currency valuation for economies whose markets are...

The aim of this note is to discuss the economic perspective of the social costs of monopoly and regulation. First, this note sketches a well-recognized argument in the industrial organization, microeconomic theory, law practice, and various public policy perspectives. Second, it defines the...

Using objective measures of investor protections in 170 countries, I establish that the level of investor protection matters for cross-country differences in GDP growth: countries with stronger protections tend to grow faster than those with poor investor protections

We establish the relationship between property rights and income inequality within 22 former European colonies. The key, unexpected result is: stronger property rights are associated with higher income inequality levels. We provide plausible explanations for these findings

Using objective measures of investor protections in 170 countries, I establish that the level of investor protection matters for cross-country differences in GDP growth: countries with stronger protections tend to grow faster than those with poor investor protections