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This paper uses a unique database covering 44 countries in sub-Saharan Africa between 2000 and 2007 to study the determinants of the allocation and composition of private capital flows across countries, as well as channels through which these flows could affect growth. In the sample, the degree of financial market development is an important determinant of the distribution of capital flows across countries, as opposed to property rights institutions. The fairly consistent positive association between net capital flows and growth for sub-Saharan African countries is encouraging, though the data do not allow for making conclusive inferences about a causality relationship.

The financial sector of the Central African Economic and Monetary Community (CEMAC) has been seriously affected by the global financial crisis and resulting global recession. This note assesses the response of CEMAC governments to the global financial crisis and recession, with particular focus on the impact of current policies on each country’s fiscal sustainability as well as the region’s external sustainability and reserve coverage. The note then provides general policy advice to CEMAC governments as they refine their response to the global crisis.

The paper uses a unique database covering 44 countries in sub-Saharan Africa (SSA) countries between 2000 and 2007 to study the determinants of the allocation and composition of flows across countries, as well as channels through which private capital flows could affect growth. In our sample, the degree of financial market development is an important determinant of the distribution of capital flows across countries as opposed to property rights institutions. The fairly consistent positive association between net capital flows and growth for SSA countries contrasts with the more pessimistic results of recent studies, though our data do not allow us to make conclusive inferences about a causality relationship.

A conflict exists between the incentives offered to students and the institutional goal of increased science and math education. Students make their course choices in response to a powerful set of incentives: grades. These incentives have been systematically distorted by the grade inflation of the past 25 years. As a consequence of inflation, many universities have split into high- and low-grading departments. Economics, along with Chemistry and Math, tends to be low-grading. Art, English, Philosophy, Psychology, and Political Science tend to be high-grading. This paper presents evidence from nine colleges and universities that grade inflation has led to a divergence among departments in grading policies. We then discuss the results of an econometric study we conducted at Williams College of the influence of grading policies on course choice. The impact that differences in grading policies across departments have on the distribution of enrollments was also estimated, and policy implications of the findings are discussed.

Analysis of the economic impact of military expenditures and arms trade is frequently hampered by the limited amount of transparent, comprehensive data. Country-specific information can be supplemented, however, by data from multicountry statistical sources. This paper describes seven publications which provide multicountry statistics on military expenditure and trade--the information each source conveys, as well as the differences in coverage and definition--to assist the analyst in understanding how to use this data. Comparisons of the data reported by the various sources reveal numerous, significant differences, particularly in data on military expenditures.

Utilizing panel data, we measure the responsiveness of student course choice to grades and asses the impact on the distribution of enrollment across departments of differences in grading policies. We show that grades strongly influence course choice; this influence remains powerful after accounting for student responsiveness to signals of comparative advantage contained in grades. Enrollments are being skewed towards high-grading departments. Finally, we present evidence that, if the aim of grading is to convey information about students relative strengths and weaknesses, greater uniformity in grading policies should be achieved by lowering grades in high grading departments.