This paper examines the welfare consequences of a unilateral transfer for both the transfer-paying a nd the transfer-receiving country in which the production functions a re subject to variable returns to scale. The authors obtain the condi tions for the strong paradox, i.e., the welfare of the...

The effects of energy prices and energy conservation on economic growth have been examined empirically for the postwar U.S. economy. A vector autoregressive model includes real GDP, real capital, labor, real energy prices, and the Divisia energy index. A key feature of our finding is that some...