We live in troubled times. Over the past decade, the world economy has been wracked by financial crises, sovereign debt problems, backlash from political conflict and migrant crises, and, recently, a rise...
This paper, based on the introductory remarks made at the two-day conference on "The State of the Economy, the State of the World," is an idiosyncratic stocktaking of the trajectory of economics from Adam...
The geometry of the line and the circle has been used in economics for a long time to understand location choice and political positioning in democratic polity. This paper draws on some elementary ideas...
The paper provides a complete characterization of Nash equilibria for games in which n candidates choose a strategy in the form of a platform, each from a circle of feasible platforms, with the aim of...
There is a growing appreciation in economics that people have emotional vulnerabilities, commitments to social norms, and systematic irrationalities, which impact their decision making and choice in the...
The many and varied crises in the world economy since 2007 seem to have different origins and diverse manifestations. This paper contends that there is however a structural shift beneath the global economy...
The paper develops a new theory of group discrimination in which the discrimination in favor or against certain groups is simply a coordination device. It is built on the axiom that a person who gets to...
This volume contains the Papers and Proceedings of the 26th Annual Bank Conference on Development Economics (ABCDE) held on June 15–16, 2015, in Mexico City. The theme of the conference was "Productivity...
The discipline of law and economics deals with wide-ranging topics, from competition and environmental policy to crime control, and has been instrumental in determining how an economy performs. Yet its...
Chapter one examines the progress made on sustainable poverty reduction and shared prosperity, as well as the policies that are needed to make further progress. With 2015 being a watershed year for global...
The "tapering talk" starting on May 22, 2013, when Federal Reserve Chairman Ben Bernanke first spoke of the possibility of the U.S. central bank reducing its security purchases, had a sharp negative impact...
Much of game theory is founded on the assumption that individual players are endowed with preferences that can be represented by a real-valued utility function. However, in reality human preferences are...
Ponzis are among the most ubiquitous and least understood phenomena of economic life. They acquired a certain salience with the global financial crisis of 2008 and the crash of Bernie Madoff’s celebrated...
The control of bribery is a policy objective in many developing countries. It has been argued that asymmetric punishments could reduce bribery by incentivizing whistle-blowing. This paper investigates...
This paper investigates the role of fiscal guarantees in promoting infrastructure investment. Infrastructure is a critical driver of economic growth, but infrastructure entails significant up-front costs...
The paper argues that to achieve compliance of firms with regulations such as product quality or environmental or health standards it is better to have industries with a few large corporations than numerous...
The method of randomization has been a major driver in the recent rise to prominence of empirical development economics. It has helped uncover patterns and facts that had earlier escaped attention. But...
The aim of this edition of global development horizons is to build scenarios for the global economy over, roughly, the next two decades, with special focus given to saving and investment. Developing countries'...
The World Bank Group recently adopted two overarching goals -- the end of extreme, chronic poverty in the world by 2030 and the promotion of shared prosperity in every society. The paper examines the normative...
This paper analyzes the evolution of sovereign credit ratings in the wake of the global financial crisis by studying changes in actual, shadow, and relative ratings between 2008 and 2012. For countries...