Will economic growth inevitably degrade the environment, throughout development?This paper presents a simple household-choice framework that emphasizes the tradeoffbetween pollution-causing consumption and pollution-reducing abatement expenditures.The framework yields a simple explanation for...

This paper studies a simple, tractable model of labor adjustment in a trade model that allows researchers to analyze the economy' dynamic response to trade liberalization. Since it is a neoclassical market-clearing model, duality techniques can be employed to study the equilibrium and, despite...