Showing 1 - 7 of 7
In comparison to the standard literature on inequality and growth which assumes the former to be exogenous, we formulate a model in which inequality and growth are both endogenous. Furthermore, long-run distribution, at least locally, is shown to be independent of the initial distribution of...
Persistent link: https://www.econbiz.de/10004979287
This paper examines the effect of an increase in vertical diversity in workers' skill on the long run growth rate of an economy. It uses a two-secror model where the techonology of the consumption-good sector is supermodular and that of the R&D sector is submodular. By adopting Grossman and...
Persistent link: https://www.econbiz.de/10004979289
In the strategic trade policy literature, the firms typically make positive profits at equilibrium policy levels. We show that this is not always true when firms from the developed (North) and developing (South) countries compete in the Northern market. In particular, the South firm may be...
Persistent link: https://www.econbiz.de/10004979305
This Paper develops a dynamic, theoretical model of demand for money under decreasing marginal impatience (DMI).Given certain conditions, the steady state is shown to be saddle-path stable and unique. It is shown that, under DMI, an increase in income inequality increases the aggregate demand...
Persistent link: https://www.econbiz.de/10004979317
This paper analyzes child labor in a fully dynamic model with credit constraints. It considers the ong-run and short-run effects of an array of policies like lump-sum subsidy, enrollment subsidy, improvement in primary education and variations in loan market parameters. It is shown that some...
Persistent link: https://www.econbiz.de/10004979318
Majority of the trading blocs to date are between similar countries, rather than between developed and developing countries. This paper provides a rationale for why trading blocs among similar countries may arise as an equilibrium phenomenon. It develops a model of an asymmetric world economy,...
Persistent link: https://www.econbiz.de/10004979321
We develop a game-theoretic analysis of terrorism that examines the interaction between a terrorist organization and multiple target countries, and considers both pre-emption and deterrence as counterterrorist policies. The damage from terror includes not only the material cost of fatality,...
Persistent link: https://www.econbiz.de/10004979343