The effects of a unilateral cut in emissions (e.g. by Annexure 1 countries in Kyoto) are analyzed in a dynamic two-country two-commodity model. If the fossil fuel is priced at marginal cost, a unilateral cut reduces total emissions (the carbon leakage is less than one hundred percent). But if...

In a dynamic general equilibrium model with endogenous markups and labor market frictions, we investigate the e®ects of increased product market competition. Unlike most macroeconomic models of search, we endogenize the labor supply along the extensive mar- gin. We ¯nd numerically that a model...

Since the early 1990s the Indian economy has seen a considerable relaxation of controls, as a consequence of which it has witnessed unprecedented growth. This is especially remarkable in the external sector. In this paper I evaluate the progress made on the macroeconomic front and address the...

We analyse debt policy in a two-period, two-sector overlapping generations model with Leontief technologies. We find that debt, issued to transfer resources to the initially old, could be welfare improving in the new steady state for an economy which satisfies the usual conditions for dynamic...

This paper estimates the impact of climate change on foodgrain yields in India, namely riceand millets. We estimate a crop-specific agricultural production function with exogenous climate variables, namely, precipitation and temperature and control for key inputs such as irrigation, fertilizer...

The “impossible trinity” refers to the impossibility of the simultaneous presence of a fixed exchange rate regime, uncovered interest parity and the Central Bank?s control over the money supply. I apply this to Krugman?s (1979) balance of payments crisis model, where he argued that there is...

In models of trade with monopolistic competition, firms set prices above marginal cost. An example is provided in this paper in which, because of this, a growth in the labor force lowers welfare per capita. Copyright 1997 by Blackwell Publishing Ltd.