We estimate the impact of the recent global economic crisis on remittances into Africa for the period 2009-2010. Interestingly, the majority of remittances seem to flow within the African continent. The magnitude of the forecast decreases in remittance flows into African countries varies between...

Financial instruments are subject to inflation taxes on the wealth they represent and on the nominal income flows they provide. This paper explicitly introduces financial instruments into the standard stochastic growth model with money and production and shows that the value of the firm in this...

A market for used capital goods, or financial instruments that represent the ownership of the used capital goods, induces inflation taxes on wealth and on the nominal income flows they provide. This paper explicitly introduces trading in either used capital goods or financial instruments into...

(Copyright: Elsevier)

A framework for examining the process of financial market development is proposed. The framework is anchored in studying the incentives facing the key players in financial markets - borrowers, lenders, liquidity providers, and regulators - whose actions determine whether and how markets develop....

This paper argues that the stock market is an important channel of monetary policy. Monetary policy affects real economic activity because inflation levies a property tax on stocks in addition to an income tax on dividend payments. Inflation thus taxes stocks more heavily than it does bonds....

Agency problems within the firm are a significant hindrance to efficiency. We propose trust between coworkers as a superior alternative to the standard tools used to mitigate agency problems: increased monitoring and incentive-based pay. We show how trust induces employees to work harder,...

Charitable giving, which is generally intended to serve as nonmarket insurance, is large and pervasive. Two thirds of all households gave charitable gifts in 1995, the sum of which was over $100 billion. Stiglitz (1987), Kaplow (1995) and others argue that gift giving should be subsidized...