In this paper we explore the accumulation of capital in the presence of limited insurance against idiosyncratic shocks, borrowing constraints and endogenous labor supply. As in the exogenous labor supply case (e.g. Aiyagari 1994, Huggett 1997), we find that steady states are characterized with...

In this paper we compare several historical scenarios very different one to each other both in institutional and geographical terms. What they have in common is the situation of relative poverty of most of the population. On the one part we are dealing with historical industrializing Catalonia...