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Who benefits from economic growth? This paper analyses the distributional impact of different types of growth within a two-sector model. The paper first presents necessary and sufficient conditions for unambiguous changes in wage inequality in a dual economy, based on analysis of the entire...
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knowledge sector is bounded, as productivity increases, the economy moves from a Solovian zone where wages increase with … bliss point can only be made better-off by an increase in diversity. If wages are set by monopoly unions rather than set … employment in the material goods sector. International trade may reduce wages in poor countries and increase them in rich …
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We analyze the adoption of green technology in a dynamic economy affected by random shocks where demand spillovers are the main driver of technological improvements. Firms' beliefs and consumers' anticipations drive the path of the economy. We derive the optimal policy of investment subsidy and...
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The paper looks at a model of directed technical change in an environmental-economics context. Firms can do conventional or "green" R&D or they can abate emissions at the end of pipe. The paper has two main foci. On the one hand, it investigates the impact of environmental regulation on the...
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