The one-sector neoclassical growth model (Solow, 1956,RES) can generate only simple dynamics. The dynamic properties of … complex dynamic behaviour. We study some of the properties of a discrete-time version of the two-class model of growth and …

services and the budget share of services rises. Higher productivity growth in the market sector pushes up the tax rate and …

Governments perpetually align their policies to satisfy shifts in voters' relative demand for economic growth versus … growth. This mechanism generates a positive co-movement between inequality and growth. The pattern is weaker in countries …

This paper constructs a dynamic analysis of the growth and distribution models of Das and Ghate (2004) and Alesina and … capital income chosen in a political equilibrium is lower than the growth maximizing tax rate. This slows growth down, but for … a very different reason than in Alesina and Rodrik (1994). Here, unanimity holds, and slower growth comes together with …

This paper generalizes the analysis of distributive conflict, politics, and growth developed by Alesina-Rodrick (1994 …). We construct a heteregenous-agent framework in which both growth and the distribution of wealth are endogenous. Due to … implies that the optiomal tax rate is the same for all households and equals the growth maximizing tax rate. Hence, there is …

distribution, the tax rate and growth evolve endogenously over time. When voting occurs over a tax on capital, we show that the … growth rate is maximized at the political equilibrium in the long run. When voting occurs over a general income tax, we show … that the growth rate is maximized at the political equilibrium in both the short and long run. These results suggest that …

Contributing to the contentious debate on the relationship between sovereign debt and economic growth, I examine the … role of theory-driven (non-)sustainable debt-ratios in combination with debt-ratio thresholds on economic growth. Based on … non-sustainable debt-ratios above and below the 60% threshold, have a detrimental effect on short-run economic growth …

Policy reforms aimed at boosting long-run growth often have side effects – positive or negative – on an economy … reconsideration of the role growth-promoting policies play in shaping the vulnerability and resilience of an economy to macroeconomic … growth – contained in Going for Growth and the Economic Outlook – and attempts to establish whether they underpin …