The purpose of this paper is to contribute a new model of the Gold Standard, focusing on the interaction between resource scarcity and demographics. In a dynamic micro-founded model we find that: i) prices and equilibrium gold holdings increase with population (a scale effect), but decrease with...

Following the Arab-Spring protests, we examine macroeconomic interactions between a productive firm and a rent-seeking government characterized by a continuous probability of regime shift. The model is able to rationalize the early growth leaps witnessed in many Arab economies (the “Social...

Many studies suggest that research productivity falls after tenure is granted. We have however limited choice-theoretic understanding of why this should occur. With some simplifying assumptions, we rationalize this as follows. Scholars are assumed to be “specialistsâ€: their research...

We build a model of the euro area incorporating financial market frictions at the level of firms and households. Entrepreneurs borrow from financial intermediaries in order to purchase business capital, in the spirit of the "financial accelerator" literature. We also introduce two types of...

The Dominican Republic and Haiti share one island but display different economic and environmental paths. Policy decisions in the Dominican Republic aimed at protecting environmental resources help in explaining its better economic and environmental performance as compared to Haiti. The paper...

This paper investigates leading by example as a policy prescription for international collective action to provide summation public goods. A country leads by example by committing to a minimal level of provision, and by matching higher contributions there beyond. In an evolutionary...