This paper examines a model of optimal growth where the agregation of two separate well behaved and concave production technologies exhibits a basic non-convexity. Multiple equilibria prevail in an intermediate range of interest rate. However, we show that the optimal paths monotonically...

In order to reach the state of economic sustainability, the problem of technology transition emphasizes the possibility of substituting for the exhaustible resource with an everlasting source of energy input. This paper aims at providing an analysis of this problem in an overlapping-generation...

Consider a small developing economy with a manufacturing sector opened to international trade, and an agricultural sector having limited, not to say any, access to world markets. We modify the Grossman and Helpman's influence-driven model of trade policy formation to allow for an endogenously...

In a simple formal model of two-country, two-good with an elementary Conflict Technology, we use a rudimentary game theoretics to study the matter of war and peace, where under peace, cooperative exchange takes place, and where, in case of war, the winner takes all through appropriation of the...

This paper investigates the effects of lobbying by corporations when investments are irreversible and government cannot commit to tax policies. We show that industries which rely more heavily on sunk capital lobby more vigorously and are generally more successful in obtaining tax breaks. Thus...

Empirical findings suggest a positive correlation between inequality and social immobility, a phenomenon coined the Gatsby curve. However, complete explanations of the phenomenon have not yet been proposed. This paper answers two questions: What are Gatsby curves? When do they exist? We build a...