In the standard neoclassical model, when two countries with disparate capital levels open to trade, the capital-rich country exports capital to the capital-poor country. This hastens growth in the poor country and generates income for the rich country, to the benefit of both. Real countries do...

"We model the development of property rights as an endogenous process, driven by capital accumulation. Property rights internalize the portion of the return to capital that is otherwise treated as common property. This enclosure further encourages capital accumulation and sustains economic...

This paper puts forth a theory to explainwhy special interest groups are more prevelant in some countries. Its thesis is that uneven industrialization facilitates the formation of special interest groups with monopoly control over factor supplies. An uneven industrial structure is both an...

We then characterize analytically and numerically how the characteristics of private information—its quantity, persistence and correlation, and division among speculators—affect trading profits, pricing and trading strategies. In particular, we derive how speculators trade on new information...

Consider a collection of agents with stochastically fluctuating heterogeneous endowments. It seems natural that credit is the appropriate market mechanism for insuring such fluctuations: individuals save when endowment is high, and deplete their savings or borrow when their endowment is low. The...