In this paper we use a four-sector, two-region model to investigate the impact of an increase in capital on regional income inequality. We also analyze its impact on wages, and rents on capital and land. These changes occur due to a movement in the internal terms of trade - a worsening of the...

A Solow type two-sector growth model is used to examine several issues related to growth and unemployment in a minimum wage economy. By simulating the model, we demonstrate that given the same percentage increase in wage rate, an economy with a higher capital-labor ratio is more likely to decay....

This paper investigates the impact of foreign aid and corruption on the welfare of different classes in an economy that receives aid and uses it to finance a public good. We use a general equilibrium model that consists of three goods and three income classes to derive our results. The most...

In this paper we use a four-sector, two-region model to investigate the impact of an increase in capital on regional income inequality. We also analyze its impact on wages, and rents on capital and land. These changes occur due to a movement in the internal terms of trade - a worsening of the...

A Solow type two-sector growth model is used to examine several issues related to growth and unemployment in a minimum wage economy. By simulating the model, we demonstrate that given the same percentage increase in wage rate, an economy with a higher capital-labor ratio is more likely to decay....