Chakrabarty, Debajyoti - Zentrum für Europäische Integrationsforschung (ZEI), … - 2002
The paper studies the relationship between inequality and economic growth. This is done in a two sector model of endogenous growth with agents characterized by heterogeneity of factor endowments. The private sector consists of a large number of competitive ¯rms who produce the only ¯nal good...