We consider a multi-sector general equilibrium model with IO linkages, sector-specific productivities and tax rates. Using tools from network theory, we investigate how the IO structure interacts with productivities and taxes in the determination of aggregate income. We show that aggregate...

This paper analyzes compliance with emission regulations, focusing on investment in innovation and cheating as primary strategies. Firms prioritize developing a truly compliant technology but may activate a cheating device depending on the outcome of innovation, the monitoring system in place,...

This paper examines the effect that a country's business regulatory environment has on the amount of foreign direct investment it attracts. We use the World Bank's Ease of Doing Business ranking to capture the costs that firms face when operating in a country. Several interesting results emerge....

This paper contributes to trade diversification literature by comparing changes in relative (i.e. assessed in comparison with world patterns) heterogeneity of import and export structures in the process of economic development. In particular, by focusing on the diversification of imports, we add...

Extraordinary spread of new information and communication (ICTs) technologies has been recognized worldwide. ICTs are broadly perceived as tools facilitating economic growth and development, especially in economically backward countries. They are relatively easy and cheap to adopt, require...

Standard economic theories have severe difficulties in simultaneously explaining a number of key aggregate empirical facts: i) there are substantial differences in capital-labor ratios across time ii) despite continuously increasing capital-labor ratios, both factors still earn non-negligible...

This paper examines the number of licensed private cars in the economy per unit of GDP, or car intensity, as an intrinsic component of car use that may be underlying the observed peak car phenomenon. Using data on 88 countries from 1950 to 2010, I demonstrate that car intensity evolves in a...