This paper sheds light on two problems in the Penn World Table (PWT) GDP estimates. First, we show that these estimates vary substantially across different versions of the PWT despite being derived from very similar underlying data and using almost identical methodologies; that this variability...

Until recently, the World Trade Organization (WTO) has been an effective framework for cooperation because it has continually adapted to changing economic realities. The current Doha Agenda is an aberration because it does not reflect one of the biggest shifts in the international economic and...

Two aspects of global imbalances - undervalued exchange rates and sovereign wealth funds (SWFs) - require a multilateral response. For reasons of inadequate leverage and eroding legitimacy, the International Monetary Fund (IMF) has not been effective in dealing with undervalued exchange rates....

From the recent G8 Summit to UN declarations, calls for a Big Push in official development assistance by OECD countries are becoming more frequent and pressing. Although there may be a consensus among the donor community to increase giving, what impact will this new aid have on recipient...

This paper suggests a reinterpretation of global growth — encompassing notions of unconditional convergence and the middle income trap — in the past 50 years through the lens of growth theory. We innovate by studying two modes of convergence: a classic “Solow” model where poorer...

There is growing clamor in industrial countries for additional border taxes on imports from countries with lower carbon prices. A key factor affecting the impact of these taxes is whether they are based on the carbon content of imports or the carbon content in domestic production. Our...

The basic narrative on climate change between the rich and poor worlds has been problematic. The focus on emissions has made industrial countries inadequately sensitive to the unmet energy needs in developing countries. And it has led developing countries to adopt the rhetoric of recrimination...

A fundamental shift is taking place in the world economy to which the multilateral trading system has failed to adapt. The Doha process focused on issues of limited significance while the burning issues of the day were not even on the negotiating agenda. This paper advances five propositions:...

Rajan examines the problems of failed states, including the repeated return to power of former warlords, which he argues causes institutions to become weaker and people to get poorer. He notes that economic power through property holdings or human capital gives people the means to hold their...