Long-run economic growth is analysed in a global model with many small countries prone to national level total factor productivity shocks. The possibility of precautionary saving or dissaving is a function of the higher-order moments and the cross-moments of the factor income distributions,...

It is known from Grout (1984) that if the investment decision by the firm precedes the wage bargain, it will be unable implicitly to share the cost of capital with its workforce through negotiating a lower wage, and that this leads to under-investment. However, in a model, where there is...

A model is presented where economic growth is co-determined with the number of entrepreneurial firms as functions of union wage bargaining power and of inter-firm labour mobility. There is an inverse-U relationship between economic growth and the number of firms, if they are both heterogeneous...