's income at the end of a period serves as her endowment in the following period. In this setting growth and inequality arise … possibilities. In both treatments (with and w/o punishment) inequality and group income are positively correlated for poor groups … (below median income), but negatively correlated for rich groups. There is very strong path dependence: inequality in early …

-capital investments, thereby disregarding positive spillover effects. As a consequence, macroeconomic growth diminishes. The results of an …

end of a period serves as her endowment in the following period. In this setting growth and inequality arise endogenously …. Inequality and group income are positively correlated for poor groups, but negatively correlated for rich groups. There is very … strong path dependence: inequality in early periods is strongly negatively correlated with group income in later periods …

precisely each agent's income at the end of a period serves as her endowment in the following period. In this setting growth and … inequality arise endogenously allowing us to address new questions regarding their interplay and effect on cooperation levels. We … do not decline over time. Introducing the possibility of punishment leads to lower group income, but less inequality …