As a result of public investment, lower freight transport costs tend to translate into lower local price indices and are associated with equilibria characterized by higher output and consumption. In this paper we investigate an additional effect to these trade gains, namely the gains from better...

Examines 67 IMF Article IV consultations in 27 EU member states between 2008 and 2011, and shows that there is an overwhelming emphasis on fiscal consolidation, reduction of social expenditures, and measures that weaken the bargaining power and income of labour, and make it difficult to promote...

In this report, we explore innovation as the engine of economic prosperity and argue that the greatest strength we possess is our ability to induce and embrace change, from the integration of new technologies to new peoples and cultures. Indeed, if we hope to remain an ongoing, vital player in...

For centuries, economists have struggled to explain why people and businesses gather in cities.

The Federal Reserve Bank of Chicago, Milwaukee Urban Entrepreneur Partnership, and the University of Wisconsin’s Center on Business and Poverty convened a series of meetings over the past year to discuss how corporate and civic leadership can be engaged to promote economic development in...

In an era of limited research resources and limitless research needs, demonstrating the worth of any research discipline to policymakers and administrators is a prerequisite for obtaining future funding and making an impact in policy matters. Economists have worked diligently in developing both...

The key feature of endogenous growth models is that they imply that permanent changes in government policy can have permanent effects on growth rates. In this paper, we develop and implement an empirical framework to test this implication. In a regression of growth rates on current and lagged...