Fluctuations in the terms of trade-the price of a country's exports relative to the price of its imports-are a source of perennial to policymakers in developing countries and industrialized nations alike. Terms of trade growth is extremely volatile and can lead to sudden changes in a country's...

We examine the effect of language acquisition on the growth of immigrants’ earnings. We gathered data on recent Soviet immigrants to Israel that include retrospective questions on earnings and language ability on entry into their current job. Language acquisition is found to interact...

This paper uses PSID data on the ex-tended family to test whether intervivos transfers from parents to children are motivated by altruism. Specifically, the paper tests whether an increase by one dollar in the income of parents actively making transfers to a child coupled with a one dollar...

The marginal efficiency costs of different taxes is analyzed in three models with endogenous growth, and the values are compared with those found in standard models. The models analyze how taxes af- fect (i) the trade-off between human capital accumulation and leisure, (ii) the intertemporal...