When a society wants to control aggregate emission under a certain target level, is it more desirable to impose a tax or a regulatory standard on emission? To answer this question, we explore a model where plants are heterogeneous in productivity and monopolistically competitive in the...

When China acceded to WTO in 2001, there were fears that Chinese firms would lose market share in key sectors to foreign-invested enterprises (FIEs). Although aggregate data often indicate a shift in favour of FIEs, indigenous firms in many cases have slowly increased market share and deepened...

Existing indicators of technical change are plagued by shortcomings. I present here new measures based on books published in the field of technology that resolve many of these problems and use them to identify the impact of technology shocks on economic activity. They are positively linked to...

The 2007 Ontario Court of Appeal decision in Whitefish Lake Band of Indians v. Canada (Attorney General) sets out, for the first time, a set of guidelines for establishing compensation for cases in which the Crown allegedly breached its fiduciary duties to a First Nation band. The influence and...

This paper is concerned with the semiparametric estimation of function means that are scaled by an unknown conditional density function. Parameters of this form arise naturally in the consideration of models where interest is focused on the expected value of an integral of a conditional...

This paper proposes a test for the correct specification of a dynamic time-series model that is taken to be stationary about a deterministic linear trend function with no more than a finite number of discontinuities in the vector of trend coefficients. The test avoids the consideration of...

This paper shows that the Mortensen-Pissarides search and matching model can be successfully parameterized to generate observed large cyclical fluctuations in unemployment and modest responses of unemployment to changes in unemployment insurance (UI) benefits. The key features behind this...

We study how the predictive power of level-k models changes as we perturb the classical beauty contest setting along two dimensions: the strength of the coordination motive and the information symmetry. We use the Morris and Shin (2002) model as the unified framework for our study, and find that...

One of the central issues in welfare economics is the measurement of overall wellbeing and, to this end, the interaction between institutions (polity) and growth is paramount. Individual welfare depends on both economic and political factors but the continuous nature of economic variables...

Aphorisms that “Rising tides raise all boats” or that material advances of the rich eventually “Trickle Down” to the poor are really maxims regarding the nature of stochastic processes that underlay the income paths of groups of individuals. This paper looks at the implications of...