Three factors of economic growth, i.e., physical capital accumulation, schooling, and learning by doing, are investigated. The special relationship between the first factor and the other two is modeled through adjustment costs in production experience accumulation whenever the production...

A two-country trade model of foreign aid is developed. The aid-receiving country suffers from Harris-Todaro type unemployment. Aid is either untied, tied to sector-specific capital, or tied to intersectorally mobile capital. These types of aid are compared by examining their terms-of-trade and...

Written from a European perspective and covering both trade and international finance, this innovative text provides a thoroughly up-do-date and comprehensive treatment of each area. The theory is illustrated with empirical evidence and an abundance of relevant case studies and brief accounts of...

The authors analyze a two-country, general equilibrium model. The countries are identical, except for the existence of an efficiently operating market for producer services in one country, which allows it to gain cost advantages by using differentiated services as an intermediate input in the...

The authors investigate the implications of pollution as a byproduct of production and analyze how environmental concern affects the optimal rate of economic growth and optimal government policy. The government must levy taxes on income to finance both productive government spending and...