Sound public policy addresses externalities directly, when possible. Air pollution is best alleviated by policy instruments that internalize the social cost of pollution, making it attractive to reduce emissions. One such instrument might be a tax levied on individual emissions, if they are...

¿Cuáles son las estrategias apropiadas para proteger el ambiente en países en desarrollo que al mismo tiempo buscan promover el crecimiento y reducir la pobreza? Este artículo revisa la literatura acerca de la intervención costoefectiva,2 comparando los instrumentos regulatorios y fiscales...

This paper presents the design of cost effective interventions to protect the environment from excessive pollution in developing countries. The concept of intervention is motivated by the typical explanation for environmental problems in economic theory--external effects. The aim of the paper is...

This paper surveys methodological issues in subnational credit ratings and highlights key challenges for developing countries. Subnational borrowing from capital markets has been on the rise owing to fiscal decentralization and demand for infrastructure investments. A prerequisite for accessing...

As a result of worldwide decentralization, subnational debt is rising. Subnational debt crises in major developing countries in the 1990s have led to strengthened regulatory frameworks for subnational borrowing and insolvency. With the fragility of the global recovery and increasing public debt,...

Fiscal responsibility laws are institutions with which multiple governments in the same economy-national and subnational-can commit to help avoid irresponsible fiscal behavior that could have short-term advantages to one of them but that would be collectively damaging. Coordination failures with...

This paper explores the building blocks of an institutional framework to govern borrowing by subnational entities to finance infrastructure investment. The framework should help in achieving sustainable financing of development needs and sound management of fiscal risks. Based on international...