The growth process for a technological leader is different from that of a follower. While followers can grow through imitation and capital deepening, a leader must undertake original research. This suggests that as the gap between the leader and the follower narrows, the follower must undertake...

Despite the well-documented increase in the relative wages and expenditures of highly-educated individuals in the U.S. in recent decades, leisure inequality mirrors inequality of wages, i.e. we observe that highly-educated individuals have now relatively less leisure time than lower-educated...

We investigate the causes of civil war, using a new data set of wars during 1960-99. We test a greed theory focusing on the ability to finance rebellion, against a grievance theory focusing on ethnic and religious divisions, political repression and inequality. We find that greed considerably...

The distribution dynamics of incomes across Indian states are examined using the entire income distribution rather than using standard regression approaches. The period 1965 to 1997 exhibits twin-peaked dynamics: there are two income convergence clubs at 50% and 125% of the national average...

This paper introduces a class of cointegration tests based on estimated low-pass and high-pass regression coefficients from the same wavelet transform of the original time series data.  The procedure can be applied to test the null of cointegration in a n + k multivariate system with n...

Time invariance of factor loadings is a standard assumption in the analysis of large factor models.  Yet, this assumption may be restrictive unless parameter shifts are mild (i.e., local to zero).  In this paper we develop a new testing procedure to detect big breaks in these loadings at...

This paper examines a test for the null of cointegration in a multivariate system based on the discrepancy between the OLS estimator of the full set of n cointegrating relationships in the n + k system and the OLS estimator of the corresponding relationships among first differences without...