This paper analyzes the interplay of growth, (re-)distribution and policies when the latter are set exogenously or when the latter depend on economically important fundamentals. A redistribution policy generally causes lower growth, but less so when there is technological progress. The model...

In an infinite-horizon endogenous growth model a capital income cum investment subsidy tax is considered to investigate if distribution of income towards the non-accumulated factor of production (labour) retards growth and if capital income taxes are bad instruments to finance investment...

The paper studies the effects of cross-country differences in the productionprocess of human capital on income distribution and growth. Our overlapping gen-erations economy has the following features: (1) consumers are heterogenous withrespect to parental human capital and wealth; (2)...

The paper studies the determinants of income distribution and growth in an overlapping generations economy withheterogenous households. Our framework has the following main features:heterogeneity of consumers with respect to wealth and parental human capital;intergenerational transfers,...

In this paper education simultaneously affects growth and income inequality. More education does not necessarily decrease inequality when the latter is assessed by the Lorenz dominance criterion. Increases in education first increase and then decrease growth as well as income inequality, when...

In many OECD countries income inequality has risen, but surprisingly re-distribution as well. The theory attributes this partly to the redistributive effect of education spending. In the model income inequality and growth depend in an inverted U-shaped way on education. To maintain a given level...

In this paper education simultaneously affects growth and income inequality. More education does not necessarily decrease inequality when the latter is assessed by the Lorenz dominance criterion. Increases in education first increase and then decrease growth as well as income inequality, when...

In many OECD countries income inequality has risen, but surprisingly redistribution has as well. The theory attributes this partly to the redistributive effect of education spending. In the model income inequality and growth depend in an inverted U-shaped way on education. To maintain a given...