Models on the composition of trade and growth often assume that the technological content of trade is negatively correlated with the income of the trading partner. First, this paper shows that this assumption is not supported empirically. Second, it presents a Ricardian model with non-homothetic...

The focus of this paper is the link between income volatility and the accumulation of human capital in the presence of credit constraints. Also, the effect of income inequality on the accumulation of human capital within the same framework is studied