Most developing-country governments lack resources to undertake urgent highway construction programs. This has led to the suggestion that private firms should be given franchises to build, finance, operate and transfer (BOT) highways in exchange for toll revenues. We build a conceptual framework in which we analyze the virtues and limitations of different mechanisms that could
We examine the dynamics growth in a simple economy with two industrial sectors that exert externalities on each other. We find a solution to the dynamic game that ensues between the two sectors and compare it to the efficient cooperative solution. We show that internalize the externality. The direction of the inefficiency depends on the
In this paper we derive a model of aggregate investment that builds from the lumpy microeconomic behavior of firms facing stochastic fixed adjustment costs. Instead of the standard (S,s) bands, firms` adjustment policies are probabilistc, with a probability of adjusting specification of the distribution of fixed adjustment costs, the adjustment hazards approach encompasses models ranging
We present a model of coups in autocracies. Assuming that policy choices cannot be observed but are correlated with the short-run performance of the economy we find that: (a) the threat of a coup disciplines autocrats; (b) coups are more likely in recessions; (c) increasing per capita income has an ambiguous effect on the probability
This paper estimates the cost of energy shortages to Chilean industry. The information was obtained from a sample-survey carried out shortly after the 1989 electricity restriction. The results obtained show that a 10%, one-month, equi-proportional restriction involves and average net outage cost of Usc 3.2 per kWh when a limited, selective restriction is applied. We