Central to the following discussion is the assertion that a foreign trade policy which maximizes the static efficiency gains from trade may result in reduced dynamic or X-efficiency and thus impair a developing country’s development potential. The dominant view of the relation between...

The most effective way of preventing damage of any kind is to make the originator of the damage liable and to require him to rectify it. How can this principle, that works perfectly if a private good is damaged, be applied to the environment? Which are the advantages and limitations of a...