We model the two way interaction between education, corruption and the level of output. Corruption reduces income levels and hence educational attainment. Education in turn affects the incentives for corruption: more education increases output and thus the rents from corruption, but it also...

In recent empirical work, institutions have been shown to explain a significant share of the differences in cross-country accumulation, productivity, and output levels. The key institution that determines sustained development in R&D based growth models is the strength of intellectual property...

We analyze the effects of consumption and production externalities on the long-run rate of capital accumulation. We show that the importance of consumption externalities depends upon whether or not labor supply is fixed. In the case that it is fixed, they have no long-run effects. Whether they...