We analyze firms’ investment behavior, differentiating firms according to the cash flow levels they experience during their lifecycles. We consequently consider the firm as the basic unit and not firm-year observations. Firms with persistent positive cash flow show higher investment-cash flow...

This paper analyzes central bank policies on the monitoring of banks in distress in which liquidity provisions are conditional on performance when a bad shock occurs. A sequential game model is used to analyze two policies: the first one in which the central bank acts with discretion and the...

Within a theoretical framework, the author analyzes the effects that both workers' remittances and financial intermediation have on economic growth. It is found, among other things, that remittances can have significant positive long-run effects on growth. The author confronts the implications...

I show why, when the realized rates of depreciation within the exchange rate band are regressed on a given information set and conditioned on (ex post) actual no realignment (a la drift adjustment), a 'peso problem' is still encountered. The reason is that the frequency of realignments in the...

In a model of repeated games, we determine the conditions under which cooperation to work toward a public good is an equilibrium outcome among developed and developing countries in an international forum such as the Paris Agreement. We find that monitoring, peer pressure, and rewards (climate...

We study mobilization of mitigation finance ( MF ) through a collaborative agreement between contributing high-income H countries, where the mobilized MF funds are collected and managed by a coordinating international financial institution (IFI). The mobilized MF is applied to implement...

Border carbon adjustments (BCA) imply that high-income (H) countries set taxes on carbon-intensive imports proportional to the carbon content of these imports, to match their own carbon taxes. This paper considers the use of BCA policies to incentivize carbon taxation in low-income exporter...

We study the impacts of carbon taxation of international transport fuels on CO2 emissions andtrade activity, focusing on maritime transport, which constitutes the most important internationaltrade transport activity. Our estimated bunker price elasticities range from 􀀀 0.03 to 􀀀 0.42....