This paper proposes a model of wealth distribution dynamics with a capital market imperfection and a production … infrastructure owning' upper-class entrepreneurs. It is shown that there is a minimum level of public investment below which the … inequality of opportunity, as well as to greater output. This provides an additional rationale for an active role for the …

This paper relies on a model of wealth distribution dynamics and occupational choice to investigate the distributional … consequences of policies and developments associated with transition from central planning to a market system. The model suggests …), both during transition and in the new steady-state. Creation of new markets in services also supplied by the public sector …