We try to explain why economic conflicts and illegal business often take place in poor countries. We use the concept of subsistence level of consumption (d) and assume a regular concave utility function for consumption levels higher than d. For consumption levels lower than d utility is constant...

Most models exploring the exploring the relationship between income inequality and economic growth postulate the existence of a ngative correlation between the two operating through diverse channels. Parallel to the theoretetical models a number of empirical studies have attempted to appraise...