We posit that the relationship between income inequality and economic growth ismediated by the level of equality of opportunity, which we identify with intergenerationalmobility. In economies characterized by intergenerational rigidities, an increase in incomeinequality has persistent...

This paper explores the idea that LDCs may face a human capital constraint in terms of having insufficient numbers of suitably educated people to be able to take advantage of technological innovations in the rich world. Technologically advanced sectors which operate under increasing returns to...

The development accounting literature almost always assumes a Cobb-Douglas (CD) production function. However, if in reality the elasticity of substitution between capital and labor deviates substantially from 1, the assumption is invalid, potentially casting doubt on the commonly held view that...

In this paper we develop a model of invention and knowledge-diffusion. We show, in a setting of imperfect knowledge-transfers from one generation to the next, that there is a tension between the tendency for old knowledge to be lost on the one hand, and the tendency for preserved knowledge to be...

Evidence abounds on the propagation of financial stresses originating in the US mortgage market to banking systems worldwide through international funding markets. But the transmission of this external funding shock to the real economy via bank lending is surprisingly underexamined, given the...

We use data on UK banks' minimum capital requirements to study the impact of changes to bank-specific capital requirements on cross-border bank loan supply from 1999 Q1 to 2006 Q4. By examining a sample in which each recipient country has multiple relationships with UK-resident banks, we are...

What kinds of credit substitution, if any, occur when changes to banks' minimum capital requirements induce banks to change their supply of credit? The question is central to the new ‘macroprudential' policy regimes that have been constructed in the wake of the global financial crisis, under...