This paper presents evidence that the spread between the marginal product of capital and the return on financial assets is mich higher in poor than in rich countries. A model with costly intermediation is developed. In this economy, individuals choose at each instant whether to work or to...

With the countdown to the crucial climate change summit in Copenhagen now well underway, prospects for a breakthrough appear limited. Behind the increasingly intensive negotiating activity, familiar divisions continue to hamper progress. The deadlock between developed countries and the major...

Economists have concerns about the firing cost implications of mandated severance plans. Analysis reveals that predicted severance plan consequences depend critically on the precise structure of the plan. Whether governments mandate (i) severance insurance plans or (ii) severance savings plans...