On 23 October 2001 the European Commission adopted a proposal for a directive for trade in greenhouse gas emissions. Following the US experience of emissions trading systems, this marks the first large-scale attempt to deploy this instrument of environmental policy in Europe. The proposal places...

Higher wages are generally thought to increase human capital production, particularly in the developing world. We introduce a simple model of human capital production in which investments and time allocation differ by age. Using data on test scores and schooling from rural India, we show that...

We look at the effects of rainfall forecasts and realized rainfall on equilibrium agricultural wages over the course of the agricultural production cycle. We show theoretically that a forecast of good weather can lower wages in the planting stage, by lowering ex ante out-migration, and can...