We develop a geographic growth model where nominal wages are allowed to diverge between the two considered countries. Removing the standard assumption entailing that both countries always own a traditional sector, we argue that, as trade gets freer, the traditional sector of one country might...

The cleaning up costs after closure of chemical or nuclear plants are large. They have to be taken into account in the production costs and in the pricing of the corporate, owner of such plants. Moreover, it is necessary to create a reserve account to cover these future large and long term...

This paper analyses the impact of public infrastructure on the competitiveness and growth of the Senegalese economy within the framework of a computable general equilibrium model. Latreille and Varoudakis (1996) demonstrated, in partial equilibrium, that the absence of competitiveness within...

Les effets des investissements directs étrangers, souvent provenus des pays développés, sur le pays hôte, des pays en développement pour la plupart de temps, sont mitigés. Certains économistes trouvent que les IDE sont bénéfiques pour l’économie d’accueil à cause de la création...

Strongly supported by civil society, the social movement that occurred in Guadeloupe and Martinique last winter had a common theme: the struggle against the high cost of living in these French overseas departments. During forty-four days, two groups of associations and political parties...

This article addresses theoretically the dynamics of innovation and growth paths in an economy producing “standard goods” and emerging “new goods”. We model consumers’ preferences for both types of goods as well as producers’ behaviours in relation with consumers’ decisions. In...

We analyze the relationship between inequality and economic growth from two directions. The first part of the survey examines the effect of inequality on growth, showing that when capital markets are imperfect, there is not necessarily a trade-off between equity and efficiency. It therefore...

This article surveys models of endogenous growth which are based on the microeconomic theory of family behaviour. A special emphasis is placed on the suggested formalization of the preferences, demographic behaviour, investment in human capital, production technology, labour market, and...