We examine the interaction between foreign aid and binding borrowing constraint for arecipient country. We also analyze how these two instruments affect economic growth vianon-linear relationships. First of all, we develop a two-country, two-period trade-theoreticmodel to develop testable...

Does fractionalization change over time? If so, are there any substantial implications foreconomic performance? To answer such questions, we construct a new panel data set withfractionalization measures for 26 former communist countries covering the period from 1989to 2002...

Persistent productivity gains to rural-urban migrants have been documented by a number ofresearchers. One interpretation of this result is that individuals learn higher value skills incities than they would have learned in less dense areas. Another explanation for this result,however, is that...

Starting from Professor Kornai´s assertion about the necessity to focus on the long-termperspectives of the transformation process, we analyze in this paper the Lisbon performanceof the countries of the European Union from such a long-term, structural perspective. Wepresent in a simple form the...

In this paper we show that the recent model by Duranton (AER, 2007) performs remarkablywell in replicating the city size distribution of West Germany, much better than the simplerank-size rule known as Zipf´s law. The main mechanism of this theoretical framework is thechurning of industries...

We show that taxation of rents may yield an intergenerational Pareto-improvement in a smallopen economy provided tax revenues are earmarked to reduce wage taxes...