Climate change is a phenomenon leading to randomly distributed disasters around the globe. Due to massive economic and technical asymmetry between the advanced North and the developing South efficient climate and industrial policy is particular difficult. Globally efficient policy would need to...

This contribution is motivated by two stylized observations, the slowdown in growth, and a simultaneous income polarization in many advanced economies. While mainstream neoclassical and endogenous growth theory cannot sufficiently explain the nexus, we argue that the demand side plays a role. We...