Suchergebnisse

Abstract
This paper explores the relationship between income distribution, prices, production efficiency and aggregate output in a decentralized search economy. We show that income distribution determines how competitive prices are and thereby affects production efficiency and aggregate output. It is shown that, under reasonable assumptions, it is possible to engineer a judicious transfer of income from high to low income individuals, which increases income equality, leads to more competitive prices, and increases aggregate output.

Abstract
We report an intriguing empirical observation. The relationship between corruption and output depends on the economy's degree of openness: in open economies, corruption and GNP per capita are strongly negatively correlated, but closed economies display no relationship at all. This stylized fact is robust to a variety of different empirical specifications. In particular, the same basic pattern persists if we use alternative measures of openness, if we focus on different time periods, if we restrict the sample to include only highly corrupt countries, and if we restrict attention to specific geographic areas or to poor countries. We find that the degree of financial openness is primarily what determines whether corruption and output are correlated. Moreover, corruption is negatively related to capital accumulation in open economies, but not in closed economies. We present a model, consistent with these findings, in which the main channel through which corruption affects output is capital drain.

We examine why developed societies are monogamous while rich men throughout history have typically practiced polygyny. Wealth inequality naturally produces multiple wives for rich men in a standard model of the marriage market. However, we demonstrate that higher female inequality in the marriage market reduces polygyny. Moreover, we show that female inequality increases in the process of development as women are valued more for the quality of their children than for the quantity. Consequently, male inequality generates inequality in the number of wives per man in traditional societies, but manifests itself as inequality in the quality of wives in developed societies. (JEL J12, J16, J24, Z13)

Abstract
Air pollution is a growing concern in India, and its adverse health effects are well documented. Climate change is likely to exacerbate this problem by altering weather patterns and increasing the frequency and severity of extreme events. This paper examines the potential impact of climate change on ambient air pollution in India and its implications for policy design. Our analysis reveals that pollution in India is highly sensitive to variation in weather, particularly in the densely populated Indus-Gangetic Plain. Using our estimated relationship between weather and pollution, we predict that changing weather patterns will increase average PM2.5 concentrations by 3.1 µg/m3, leading to a loss of 364 million years of life expectancy. To address this challenge, we propose an emissions fee calibrated to be highest in regions most vulnerable to persistently high levels of pollution and most sensitive to future deterioration in air quality due to climate change.