This paper models a market for status contained in a knowledge economy. Technological progress favours the knowledge sector and inequality of income rises with productivity. It turns out that the expected utility of all agents can fall while output and productivity grow; such an outcome of...

During the past two centuries, major technological breakthroughs such as the steam engine and electricity have acted as the catalysts for growth and have resulted in a marked increase in material well-being. The dominant technology today - information and communication technology (ICT) - does...

This paper discusses how information and communication technology (ICT) affects the quality and reach of consumer services. These services need to be provided locally, but consist of several components, some of which can be digitised and transmitted over long distances. A general equilibrium...

We study the earnings structure and the equilibrium assignment of workers when workers exert intra-firm spillovers on each other. We allow for arbitrary spillovers, provided output depends on some aggregate index of workers' skill. Despite the possibility of increasing returns to skills,...

I study the earnings structure and the equilibrium assignment of workers when workers exert intrafirm spillovers on each other. I allow for arbitrary spillovers, provided that output depends on some aggregate index of workers' skill. Despite the possibility of increasing returns to skills,...