A two factor general equilibrium model with perfect international capital mobility, endogenous supply of capital and labour, and heterogeneous individuals, is used to analyze the relation between taxes and capital income and labour income, and the efficiency of free capital mobility.

The effects of product and labour market rigidities on labour market dynamics are analysed using a panel of two-digit ISIC level data for seven OECD countries.

The basic problem in poverty measurement is how to weigh the income of different groups. This is a normative problem on which people differ in opinion, and hence we should seek a way of dealing with the issue that takes into account this plurality. In the paper, we suggest an approach to poverty...

We evaluate the costs of three different programs for alleviating long term poverty: (i) workfare, or grants made contingent on a work requirement, (ii) universal welfare, or unconditional grants, and (iii) meanstested welfare, or grants conditioned on private labor market earnings. We identify...

The capacity investment by a new firm into an established market is explored in a repeated price game. If the entrant expects collusion to prevail upon entry, it may not practice "judo economics" but instead choose to install enough capacity to serve the entire market. This occurs when collusion...

Empirical evidence suggests that there are important spillovers as-sociated with the operations of multinational enterprises. Spillovers may occur when less advanced, local firms learn from their more ad-vanced, foreign competitors. But less advanced firms may also actively seek knowledge by...