We analyze two hitherto little studied but salient questions concerning the trinity of asymmetric information, entrepreneurial activity, and the scope of fiscal policy in an open regional economy. First, we use a two period model to analyze the contractual relationship between entrepreneurs and...

We study how spillovers from water pollution cleanup in the Ganges affect social welfare in an aggregate economy consisting of Kanpur and Varanasi, two cities through which this river flows. We view pollution cleanup in both cities as a local public good and point out that, if Kanpur cleans up...

In this paper I propose and develop a new framework for modeling groundwater management issues. Specifically, I apply the methods of queuing theoryfor the first time, to the best of my knowledgeto model a groundwater management problem from a long-run perspective. I characterize two simple...