Especially in developing countries credit constraints are often perceived as one of the most important market frictions constraining firm innovation and growth. Huge amounts of public money are being devoted to the removal of such constraints but their effectiveness is still subject to an...

This essay provides an overview of the role of infrastructure on economic geography in the light of both theoretical and empirical findings. Two main lessons stand out. First, infrastructural improvements affect the geographical distribution of economic activities. Second, even when localized,...

Climate change is a global problem that calls for, among other measures, global carbon taxation. As not all countries tax carbon, those with higher carbon taxes, such as the EU members, face the risk of "carbon leakage". The Carbon Border Adjustment Mechanism (CBAM) makes the carbon price of...