#2009-053A "Biofuel Subsidies: An Open-Economy Analysis"
by Subhayu Bandyopadhyay, Sumon Bhaumik, and Howard J. Wall
October 2009

We present a general equilibrium analysis of biofuel subsidies in an open-economy context. In the small-country case, when a Pigouvian tax on conventional fuels such as crude is in place, the optimal biofuel subsidy is zero. More...

#2009-041A "Cross-Border Lobbying in Preferential Trading Agreements: Implications for External Tariffs"
by Subhayu Bandyopadhyay, Sajal Lahiri, and Howard J. Wall
August 2009

This paper examines the effect of cross-border lobbying on domestic lobbying and on external tariffs in both Customs Union (CU) and Free Trade Area (FTA). More...

#2009-039A "Incidence of an Outsourcing Tax on Intermediate Inputs"
by Subhayu Bandyopadhyay
August 2009

The paper uses a Hecksher-Ohlin-Samuelson type general equilibrium framework to consider the incidence of an outsourcing tax on an economy in which the production of a specific intermediate input has been fragmented and outsourced. More...

#2009-023B "What Spurs Terrorism in Developing Nations?"
by Subhayu Bandyopadhyay, and Javed Younas
May 2009
Revised September 2009

Understanding the causes of terrorism is important in predicting it and in developing an effective counterterrorism strategy. Data on the incidence of terrorist attacks and casualties suggest that domestic terrorism poses a substantially larger threat than transnational terrorism in developing countries. More...

#2009-021A "Foreign Aid as Counterterrorism Policy"
by Subhayu Bandyopadhyay, Todd Sandler, and Javed Younas
April 2009

We present a model where foreign aid bolsters proactive counterterrorism efforts of a foreign nation that is a source for transnational terrorism. More...

#2008-034C "The Interplay between Preemptive and Defensive Counterterrorism Measures: A Two-Stage Game"
by Subhayu Bandyopadhyay, and Todd Sandler
October 2008
Revised April 2009

A two-stage game depiction of counterterrorism is presented, where the emphasis is on the interaction between the preemptive and defensive measures taken by two targeted countries facing a common threat. More...

FORTHCOMING: Economica

#2008-022A "Enlargement and Common External Tariff in a Political-Economic Model of Customs Union"
by Subhayu Bandyopadhyay, Sajal Lahiri, and Suryadipta Roy
June 2008

We present a model with three blocks of nations: two of the blocks are members of a Customs Union (CU) and maintain a common external tariff (CET) on the third (non member). More...

#2007-046C "Urban Crime and Labor Mobility"
by Subhayu Bandyopadhyay, Santiago Pinto, and Christopher H. Wheeler
October 2007
Revised August 2009

We present a model of crime where two municipalities exist within a metropolitan statistical area (MSA). Consistent with the literature, local law enforcement has a crime reduction effect and a crime diversion effect. More...

#2007-038B "Political Asymmetry and Common External Tariff in a Customs Union"
by Subhayu Bandyopadhyay, Sajal Lahiri, and Suryadipta Roy
September 2007
Revised June 2008

This paper examines the effect of political asymmetries in the formation of common external tariffs (CETs) in a customs union (CU). We do so by introducing cross-border lobbying and by endogenizing tariff formation in a political economic model for the determination of CETs. More...

#2007-028A "Do Donors Care about Declining Trade Revenues from Liberalization? An Analysis of Aid Allocation"
by Javed Younas, and Subhayu Bandyopadhyay
July 2007

Many developing country governments rely heavily on trade tax revenue. Therefore, trade liberalization can be a potential source of significant fiscal instability, and may affect government spending on development activities. More...

PUBLISHED: Federal Reserve Bank of St. Louis Review, May/June 2009, 91(3), pp. 141-53