We develop a game-theoretic analysis of terrorism that examines the interaction between a terrorist organization and multiple target countries, and considers both pre-emption and deterrence as counterterrorist policies. The damage from terror includes not only the material cost of fatality,...

This paper explores the manner in which race and income interact to determine patterns of residential location in metropolitan areas. We use a framework in which individuals care about both the level of affluence and the racial composition of their communities, and in which there are differences...

We discuss nonparametric methods and statistical tests that are appropriate to assess poverty targeting in public programs. These methods explicitly account for the possibility that the population distributions of participants and non-participants cross. Crossing points provide us with upper...

Presidential elections in Korea in the eighties and nineties provide an opportunity to examine the role of political patronage in a newly formed democracy. We examine whether the bureaucratic reshuffling which accompanies presidential changes depends on the political connections of bureaucrats...

This paper examines the effect on relative wages when FDI occurs from the North to the South. The Northern firms undertake FDI to take advantage of the lower wage of unskilled labor in the South. The key assumption is that FDI from North to South occurs in an unskilled labor intensive production...

In comparison to the standard literature on inequality and growth which assumes the former to be exogenous, we formulate a model in which inequality and growth are both endogenous. Furthermore, long-run distribution, at least locally, is shown to be independent of the initial distribution of...

This paper examines the effect of an increase in vertical diversity in workers' skill on the long run growth rate of an economy. It uses a two-secror model where the techonology of the consumption-good sector is supermodular and that of the R&D sector is submodular. By adopting Grossman and...

Despite the decline in group inequality and the rapid expansion of the black middle class in the United States, major urban centers with significant black populations continue to exhibit extreme levels of racial separation. Using a theoretical framework in which individuals care both about the...

In the strategic trade policy literature, the firms typically make positive profits at equilibrium policy levels. We show that this is not always true when firms from the developed (North) and developing (South) countries compete in the Northern market. In particular, the South firm may be...

We show how an optimization algorithm can be used to approximately quantify the costs to users of spatial misallocation in centrally provided goods.These methods can be employed to evaluate the large programs of public good construction that have been central features of economic plans in many...