ARTIGE, Lionel; CAMACHO, Carmen; de la CROIX, David - Center for Operations Research and Econometrics (CORE), … - 2003
In a two-region model, we formalize Kindleberger's idea that wealth breeds first more wealth, and then decline: when one region leads, its inhabitants develop consumption habits incompatible with the necessary investment in knowledge to remain the leader. This gives the other region a window of...