This textbook is an introduction to the newer features of growth theory that are particularly useful in examining the issues of economic development. Growth theory provides a rich and versatile analytical framework through which fundamental questions about economic development can be examined....

In this paper we build a model of occupational choice with informal production and progressive income taxation. We calibrate the model to the Brazilian economy to evaluate the impact of removing financial frictions on informality. We find that financial deepening leads to a drop in the size of...

Theoretical Foundations: A General Equilibrium Approach -- The Harris-Todaro Migration Model and Introduction of the Informal Sector -- Informal Sector and Open Unemployment -- Foreign Capital Inflow, Informal Sector and Welfare -- How and How Far to Liberalise a Developing Economy -- Economic...

Labor markets in Latin America and the Caribbean (LAC) are characterized by high levels of informality and relatively rigid regulation. This paper shows that these two features are related and together make the speed of adjustment of employment to shocks slower, especially when regulations are...

With fiscal adjustment proceeding quickly in Bulgaria and given the weak economic growth environment, there is keen interest in making the budget composition more growth friendly. This paper quantifies the short-term impact of fiscal policy on economic activity in Bulgaria using econometric and...

Financial inclusion has been one of the key pillars of Colombia's development strategy for anumber of years. Financial inclusion policies have aimed at channeling microcredit to poor,spreading formal banking system usage, fostering electronic payment acceptance, andmaking financial services more...

Introduction: Orientation and Focus -- The Preliminaries -- The Two Sector Ramsey Model -- The Three-Sector Ramsey Model -- Extensions to the Three-Sector Model -- The Extended Three-Sector Model -- A Three-Sector #x2013; Two-Country World -- Data Issues and the Social Accounting Matrix -- Solution...

Despite significant strides in financial development over the past decades, financial dollarization, as reflected in elevated shares of foreign currency deposits and credit in the banking system, remains common in developing economies. We study the impact of financial dollarization,...

This paper looks at the empirical record whether big infrastructure and public capital drives have succeeded in accelerating economic growth in low-income countries. It looks at big long-lasting drives in public capital spending, as these were arguably clear and exogenous policy decisions. On...