We use an overlapping generations model of human capital accumulation to study the impact of the AIDS crises on growth. In our model, the AIDS crisis lowers life expectancy and thus the incentive to save and accumulate physical capital. Moreover, the AIDS crisis lowers the returns to human...

In this paper we study how privatization and deregulation of production of intermediate goods influence capital accumulation. Our model is solved under three alternative scenarios: one where the intermediate sector is composed of a public monopoly under government control, one where the...

In this paper, we study the divestiture of state monopolies frequently found in intermediate industries. Using a theoretical model of an aggregate economy, we restrict our attention to the case where the monopolistic structure is preserved in the process of privatization. We consider the...

We study an economy where agents are heterogeneous in entrepreneurial ability, and may decide to become workers or entrepreneurs. The government is motivated by a production externality to impose regulations on entrepreneurship, and sets a level of red tape - administered by public officials -...

Gulf carriers, such as Emirates Airline, Etihad Airways, and Qatar Airways, have expanded aggressively and are creating an increasingly dense global network. These carriers' future growth prospects, however, hinge on their ability to gain access to lucrative markets in Europe and America, for...

We present an empirical study of voting behavior to analyze the impact of opportunism; that is, whenever political incumbents implement economic policies strategically and in connection with general elections in order to gain votes. We derive a measure for opportunism that is isolated from the...

We generate a time-series of relative preferences of policy makers for inflation stability using a sample of 24 countries in order to study the behavior of political parties. Such behavior is essential in both the partisan cycle models and the opportunistic political cycle analysis. Our evidence...

We study an economy where agents are heterogeneous in entrepreneurial ability, and may decide to become workers or entrepreneurs. The government is motivated by a production externality to impose regulations on entrepreneurship, and sets a level of red tape to test regulation compliance. In an...

This paper presents new empirical evidence regarding the cyclicality of skill acquisition activities. The paper studies both training and schooling episodes at the individual level using quarterly data from the NLSY79 for a period of 19 years. We find that aggregate schooling is strongly...