The absence of state capacities to raise revenue and to supportmarkets is a key factor in explaining the persistence of weak states.This paper reports on an on-going project to investigate the incentiveto invest in such capacities. The paper sets out a simple analyticalstructure in which state...

This paper develops a simple model to analyze how a lack of politi-cal competition may lead to policies that hinder economic growth. Wetest the predictions of the model on panel data for the US states. Inthese data, we …nd robust evidence that lack of political competitionin a state is...

This paper investigates whether the industrial relations climate inIndian states has affected the pattern of manufacturing growthin the period 1958-92. We show that states which ammendedthe Industrial Disputes Act in a pro-worker direction experiencedlowered output, employment, investment and...

[...]We address several questions in this paper. First,how could macro markets be useful to the average person?Second, how large are the potential benefits from diversificationif these markets were to be introduced andused optimally? Third, can existing financial marketsachieve a similar degree...

Many features of the German monetary targetingregime are also key elements of inflationtargeting in the other countries examined inthis study. Indeed, as pointed out in Bernanke and Mishkin(1997), Germany might best be thought of as a “hybrid”inflation targeter, in that it has more in common...

This paper explores the connections betweenbroad economic indicators in the New Yorkmetropolitan region and their national counterparts.It compares the performance of theregion in recent years with that of the nation and assessesthe importance of national and local developments for thearea’s...

The securities industry in the New York–New Jerseyregion is currently enjoying strong growth in employmentand salaries. The industry is particularly important to theregion because it is concentrated locally and pays highwages. Although vulnerable to stock and bond marketfluctuations, the...

[...]In this article, we explore the DPCs’ approachesto risk management and the extent to which theseapproaches provide competitive advantage. We begin bycharacterizing the major intermediaries in the derivativesmarkets and describing how they manage risk. We thendiscuss the emergence of...

[...]We conclude that technological change, combinedwith overall growth in the capital stock, is the most importantfactor driving the growing wage inequality betweenlow-skilled and high-skilled workers. Increased competitionfrom abroad, both from developing and industrializedcountries, appears...

This article offers a critical review of recent literature on Chinese legal tradition and argues that some subtle but fundamental differences between the Western and Chinese legal traditions are highly relevant to our explanation of the economic divergence in the modern era. By elucidating the...