Even though financial markets today show a high degree of integration, the world capital market is still far from the textbook story of high capital mobility. The purpose of this paper is to highlight key source of market failure in the contest of international capital flows and to provide...

This paper preserves many of the primary features of the standard neoclassical framework while introducing some modifications that transform it into an open economy endogenous growth model with knowledge accumulation. The accumulation of knowledge is determined in part by the extent of knowledge...

The "embodiment" controversy between Jorgenson and Solow in the 1960s centered on the importance of capital-embodied technological change. It technological change is "disembodied", it affects output growth independently of capital accumulation. In contrast, "embodied" technological change...

This paper analyzes the effect of educational debt and loan-forgiveness programs on both law school entry decisions and the subsequent career choices of law school graduates using a dynamic optimization model and data on several cohorts of graduates from the University of Michigan Law School.

In this paper we investigate why regulators may wish to open regulated markets to entry by unregulated firms. We adopt Posner's view of regulation as a taxation scheme, whereby regulators set high rates in some markets in order to subsidize other markets.

We present a model in which inflation has a systematic effect on relative prices and welfare. The model focuces on the microeconomics of trade under inflation, and in particular, the role of long-term trading relationships in markets characterized by imperfect information.

In this paper we examine the incentives for governments to recognize the standards of foreign products. In the case of non-recognition, a foreign firm must incur an additional cost to sell in the local market.

We consider an Overlapping-generations economy where the aggregative production process uses physical capital and human capital. The human capital level of each individual is determined by the direct investment in education and some random "ability".

The fate of a paper has to be determined. It can be either accepted or rejected. Each member from among group of referees has an opinion regarding the acceptability of the paper. The desirable outcome, is the view held by the majority of referees . Howver, any referee, if asked to make a...

This work investigates the links between fertility choice, the dynamics ofincome distribution and economic growth. We use a simple model of fertility choice in conjunction with the well-documented differences in returns to human capital accross rich and poor to model the co-determination of...