The productivity of knowledge workers (the ""H" people") relative to that of unskilled workers (the ""L" people") could warrant that a region formulate economic development policies in order to raise this ratio via the in-migration of skilled labour. This article presents a theoretical model...

In this paper, the distinction between nominal and real income is highlighted by positing the existence of an imaginary “real dollar store.” In this store, all items are sold at a price of one dollar in the base year and the price of each is indexed to the cost of living. Hence, such...

The Solow model is widely regarded as the workhorse model of the theory of economic growth. Although at one point this model was first encountered in graduate school, it has since filtered down to the intermediate and, occasionally, to the principles of macroeconomics course. Many have commented...

The Solow model is widely regarded as the workhorse model of the theory of economic growth. Although at one point this model was first encountered in graduate school, it has since filtered down to the intermediate and, occasionally, to the principles of macroeconomics course. Many have commented...

This paper examines the welfare effects of an international commodity transfer when the volume of the transfer is uncertain. It shows that, if there is strong risk aversion, the recipient (the donor) could be absolutely worse off (better off) as a result of such transfer.