This paper illustrates how convergence equations can be used to analyze the dynamics of the income distribution, thus overcoming some of the limitations of this methodology noted by Quah. Using panel data for a sample of OECD countries, we estimates a growth equation which relates the growth...

We examine an economy where human capital is the cause of growth. Individuals are altruistic and give their offspring education and bequests. We study the incidence of three education systems on the human capital of the offspring. We show that the effects of an education subsidy on growth are...

We examine an economy where human capital is the cause of growth. Individuals are altruistic and give their offspring education and bequests. We study the incidence of three education systems on the human capital of the offspring. We show that debt may be good for growth. We also show that the...

The dominant view in the recent literature on regional convergence seems to be that the evolution of regional incomes in the industrial countries is characterized by very slow but absolute beta convergence. In this paper we challenge this view on the basis of an analysis of the Spanish...

This paper investigates the impact of taxes and public expenditures on economic growth using panel data for a sample of OECD countries. Our empirical results suggest that fiscal policy influences growth through three main channels. First,the government contributes directly to factor accumulation...

In several interesting markets, demand is an increasing function of past sales because of learning, network externalities, or fashion. This paper examines entry into such markets.

This paper surveys the empirical literature on human capital and productivity and summarizes the results of my own work on the subject. On balance, the available evidence suggests that investment in education has a positive, significant and sizable effect on productivity growth. According to my...

We study a dynamic model where growth requires both long-term investment and the selection of talented managers. When ability is not ex-ante observable and contracts are incomplete, managerial selection imposes a cost, as managers facing the risk of being replaced tend to choose a sub-optimally...