Charging for social marginal costs is efficient regardless of price elasticities, but the importance of getting prices"right"is greater the more manageable, or elastic, the demand. In efficient pollution control programs, options to make cars cleaner are combined optimally with demand...

With China's share in global trade increasing rapidly, some argued in 2002-2003 that China was exporting deflation to other countries as it was dumping cheap goods in mature markets. Later, others argued that China was sucking in commodities and thus causing sharp increases in global prices. The...

Deflation can be costly and difficult to anticipate, and concerns of a generalized decline in prices in both industrial and emerging market economies have increased recently. This paper investigates the causes and consequences of deflation, the risk of deflation globally and in individual...

In November 1989, Mexico City's administration imposed a regulation banning each car from driving on a specific day of the week. The regulation has been both popular and controversial. Some feel that it is a reasonable concession aimed at alleviating congestion and pollution problems. Others...

The authors estimate dose-response functions for respiratory disease among children based on data from public clinics in Santiago. They find that respiratory disease among Santiago s children is significantly affected by air pollution, measured as PM10 (small dust particles). The effect, for...

An equilibrium exchange rate is here defined as the level that is consistent with simultaneous internal and external balances as specified in Montiel (1996). Exogenous “fundamental” variables determining these balances are identified. Along the lines of Edwards (1994), a reduced form is...