The extent of taxation and redistribution policy is generally determined as a political-economy equilibrium by a balance between those who gain from higher taxes/transfers and those who lose. In a stylized model of migration and human capital formation, we show -- somewhat against the conventi...

We examine the growth promoting roles of R&D, international R&D spillovers, and trade in a world econometric model.

This paper provides evidence on the unit root hypothesis and long-term growth by allowing for two structural breaks. We reject unit root hypothesis for three-quarters of the countries - approximately 50% more rejections than in models that allow for only one break.

This paper analyses the relationship between technological progress, the transmission of income inequality across generations and economic growth.

This paper proposes an explicit test for determining the significance and timing of slowdowns in economic growth during the post-war period.

The stability of the growth process, whether growth rates are rising, falling or constant, is one of the central questions of economic growth theory. We use recently developed techniques for identifying structural change in economic time series and find evidence of multiple breaks in per capita...

This study explains the evolution of wage inequality over the last 30 years and supports this explanation with evidence. At each level of schooling, a faster rate of technological progress weakens the link between schooling and work and increases the unknown needed to cope with during one's...

The paper considers a two-country model of overlapping generations economies with intergenerational transfers carried out in the form of bequest and investment in human capital. We examine in competitive equilibrium the optimal provision of education with and without capital markets integration....

What is the impact on output of movement towards free trade? Can trade liberalization have a permanent effect on output levels, and more importantly, does it have an impact on steady-state growth rates? The model developed here emphasizes the role that knowledge spillovers emanating from...