In this briefly note we extend the Mountford's article quot;Can a Brain Drain be good for growth in the source economy?quot; by introducing an active role of the government in the education decisions of the agent by public education, taxes and subsidies. First, we demonstrate that the main...

The role of fiscal austerity has been questioned for centuries, but a rapidly increasing deficit along with the financial crisis in 2007 / 2008 influenced a renewed debate on the economics of austerity. This paper analyzes the role of austerity versus the role of economic growth. It also...

This study analyzes the effects of government policies on the short-run and long-run movement of locally owned firms from a developed country to a less-developed country and on the output and growth rate of each country in the presence of home bias. The analysis uses a model which was developed...

National leaders, especially in autocratic countries, are often recognized as having significant effects on economic growth. However, existing methods have not credibly obtained reliable individual estimates of such effects. In order to identify the so-called leader effect, we adopt a synthetic...

This paper confirms recent evidence of a positive impact of aid on growth and widens the scope of evaluation to a range of outcomes including proximate sources of growth (e.g., physical and human capital), indicators of social welfare (e.g., poverty and infant mortality), and measures of...