Recent research in international economics highlights the role of interdependencies of investment decisions and sales of multinational firms. Previous work focused on and provided evidence for aggregate flows or stocks of foreign direct investment, showing that interdependence declines in...

Countries have made considerable efforts to diversify their energy sources from fossil fuels to renewables in the last two decades to achieve sustainable economic development. However, it is widely argued that the countries may experience sluggish economic development during the energy...

Asset pricing and climate policy are analyzed in a global economy where consumption goods are produced by both a green and a carbon-intensive sector. We allow for endogenous growth and three types of damages from global warming. It is shown that, initially, the desire to diversify assets...

Because excessive specialization can be risky, diversification matters for sustainable development. A case study of Madagascar, this paper begins by briefly discussing economic and institutional diversification and presenting a simple model of production possibilities to illuminate the possible...

This paper analyzes the effects of increased academic standards on both average achievement levels and on equality of opportunity. The five policies evaluated are: (1) universal Curriculum-Based External Exit Exam Systems, (2) voluntary curriculum-based external exit exam systems with partial...

The fraction of persons holding a college degree differs nearly two-fold across U.S. states. This paper documents data related to state educational attainment differences and explores possible explanations. It shows that highly educated states employ skillbiased technologies, specialize in...

There is no consensus about the causes of the reduction in business cycle volatility seen in many major economies over the last decade. Using stylised models of the economies of the US, Euro area, UK and Japan, we argue that economic stability has been fostered by improved monetary policy and by...

This study uses Fehr, Jokisch, and Kotlikoffs̕ (2004a) dynamic general equilibrium model to analyze the effects of changes in fertility and mortality on the developed worlds̕ demographic transition. The model features three regions the U.S., Japan, and the EU-15 and incorporates age- and...

The net present value of costs and benefits from a pay-as-you-go social security system are negative for young people and positive for the elderly. If people all vote their financial selfinterest, there will be a pivotal age such that those who are younger favor smaller social security benefits...