to their impact on location decisions and domestic welfare. …Academic and policy debates generally consider levying tax on corporate profit on either a residence basis or on a … source basis. We explore two alternatives, based on the location of consumption, rather than production – destination …

We provide theoretical and empirical evidence that policy uncertainty can significantly affect firm level investment … and entry decisions in the context of international trade. When market entry costs are sunk, policy uncertainty can create … dynamic, heterogeneous firms model we show that: (i) investment and entry into export markets is reduced when trade policy is …

Underdevelopment is thought to be about lack of investment, and many political economy theories can account for this …. Yet, there has been much investment in developing countries. The problem has been that investment growth has not led to … output growth. We therefore need to explain not simply underinvestment, but also the misallocation of investment. The …

transitional dynamics and contrasting policy reforms in countries near steady state (developed countries) with countries far from …This paper emphasizes the relevance of classical transition dynamics for trade policy, particularly for developing … to trade policy reforms. The paper employs a simple growth model to examine these effects, formally developing the …

This paper presents a model of development of an economy comprised of a rural-agricultural sector and an urban …-industrial sector. The interaction of investment with unemployment creates a channel for potentially divergent long-run outcomes. If the … urban-industrial capital stock falls short of a threshold level, the urban-industrial sector will not develop. If the …

Why do soft budget constraints exist and persist? In this paper we argue that the prevalence of soft budget constraints … economic inefficiency, it may be politically rational because it influences the outcomes of elections. In consequence, even …

investments, employment patterns and other features of the of the economic lives of the “middle classes” defined as those whose …This paper uses household surveys from 13 developing countries to describe consumption choices, health and education … daily consumption per capita is between $2 and $4 or between $6 and $10. The data shed lights on differences and …

This paper describes the empirical regularities relating fiscal policy variables, the level of development and the rate … of growth. We employ historical data, recent cross-section data, and newly constructed public investment series. Our main … findings are: first, there is a strong association between the development level and the fiscal structure: poor countries rely …

the span between the start of trade talks and their conclusion. We use data from 88 regional trade agreements between 1988 … and 2009, and a semi-parametric Cox proportional hazards model. Four factors are robust determinants of the length of RTA … negotiations. Negotiations are more protracted when there are more countries at the negotiation table, and when the countries are …

---with which different policy scenarios can be analyzed and compared. The model is a dynamic stochastic general-equilibrium setup …This paper develops a model that integrates the climate and the global economy---an integrated assessment model … assumptions on preferences, technology, and nature, it allows a closed-form model solution. We use the model to assess the welfare …