The conventional wisdom in the literature on capital controls and growth argues that capital controls increase the ability of a government to tax capitalists which proves detrimental for growth. To address this issue, we construct an OLG model to study the effect of capital controls on human...

On November 8, 2016, the Indian government abruptly demonetized 86\% of its currency in circulation in an attempt to reduce black money, corruption, and counterfeiting. Yet, 99\% of the currency was eventually returned to banks. We use both, regional and household data to examine the medium-term...

Does distributive conflict diminish during the course of economic development? This article outlines a model in which distribution, the tax rate and growth evolve endogenously over time. When voting occurs over a tax on capital, we show that the growth rate is maximized at the political...