In this paper we introduce weak property rights in the standard real business cycle (RBC) model in order to examine the role of institutions as a source of economic fluctuations in emerging markets. In particular, in Mexico, the movements in productivity in the data are associated with changes...

We study Ramsey second-best optimal policy in a general equilibrium model of growth with renewable natural resources. Natural resources are depleted by private economic activity, but they can also be maintained by public policy. The government uses distorting taxes to finance infrastructure...

We reconsider the conventional wisdom that, in the presence of public goods, Nash tax rates are inefficiently low and decrease with the size of population. We use a general equilibrium dynamic model of a world economy, in which world-wide environmental quality has public good features. We show...