Developing and transitional economies usually experience high levels of income polarization during the period of transition and rapid economic growth. Understanding and quantifying its effects on the economy is important to developmental strategies. In this paper, we study the effect of income...

In this paper, we build a simple model to integrate the findings and/or hypotheses in the diverse literatures related to economic development and growth. They include the literature on institutions attributed to Douglas North (1990), on entrepreneurs, innovations and technical progress...