We theoretically and empirically examine the relationship between natural resource revenues and financial development. In the theoretical part, we present a politico-economic model in which contract enforcement is low and decreasing in resource revenues when political institutions are poor, but...

Theoretical analyses of industrial policy normally restrict the range of possible outcomes by abstracting from either market or government failures. This paper thus studies industrial policy and its effectiveness in a model that includes both market and government imperfections. We introduce a...

The presence of conflict affects peoples economic incentives. Some sectors of activity flourish, while others suffer. For understanding structural problems in developing countries and designing appropriate post-conflict reconstruction policies, it is essential to understand in what ways conflict...