Monthly Archives: May 2011

In this paper, Stolper and Samuelson propose a simple model that demonstrates real earnings of the scarce factor of production in a country are lowered when trade is liberalized.  However, overall welfare is improved by the opening of trade.  This implies that, despite the fact that the scarce factor is harmed by the opening of [...]

The 19th century was characterized by fundamental political reform and unprecedented changes in taxation and redistribution.  During this period, inequality started to decline and the franchise was extended to larger group.  In this paper, Acemoglu and Robinson posit that the reasons behind this is that rising inequality in societies yields social unrest.  When the threat [...]

Media plays a very important role in any kind of government, especially in democracies. Examples from various countries that move from an autocracy towards democracy offer support. One of the most important roles of the media is to act as a check on corrupt politicians, businessmen, bureaucrats, and generally on governments as a whole. But [...]