This paper investigates the link between overall specialization and growth, analyzing the shape of the relationship between the median of the sectoral distribution of the Balassa Index, our summary measure of overall specialization, and the level of per capita income. The median of the Balassa...

This paper examines the impact of trade costs on real exchange rate volatility. We incorporate a multi-country Ricardian model of trade, based on the work of Eaton and Kortum (2002), into a macroeconomic model to show how bilateral real exchange rate volatility depends on relative technological...

While reducing industrial greenhouse gas (GHG) emissions is undoubtedly necessary to avoid an ecological disaster, political support for environmental regulation depends largely on its effectiveness and expected side-effects. A potential fallout often associated with environmental policies is a...