First Author:   Giorgio Fazio University of Palermo, University of Glasgow giorgio.fazio@unipa.it   SEAF, Facolta'' di Economia, Viale delle Scienze Palermo, 90128, Italy   +39 091 23895254(Phone) +39 091 23895254(Fax) Second Author: Joseph P Byrne University of Glasgow j.byrne@lbss.gla.ac.uk   Department of Economics, Adam Smith Building, University of Glasgow Glasgow, G12 8RT, UK   +44 (0)141 330 4617(Phone) +44 (0)141 330 4940(Fax) Third Author: Norbert Fiess World Bank nfiess@worldbank.org   The World Bank, Bouchard 547 - 29th Buenos Aires, C1106ABG, Argentina   + 54 11 4316 9700(Phone) + 54 11 4313 1233(Fax)