gravity (non-gravity trade) and the distribution of income within countries. In countries where only a small share of the … population are educated, an increase in non-gravity trade is associated with a significant increase in income inequality. As … education of the population increases the correlation between non-gravity trade and income inequality becomes smaller. Non …

his lifetime income and the lifetime income of his reference group; hence the paper offers a permanent income version of … the Duesenberry's relative income hypothesis. Across households the saving ratio increases with income while aggregate … saving is independent of the income distribution. Positional concerns lead agents to over-consume, over-work and under …

attention in the literature on optimal income taxation. This paper offers a simple and transparent analysis of its main …