We present an OLG model in which life expectancy and environmental quality dynamics are jointly determined. Agents may invest in environmental care, depending on how much they expect to live. In turn, environmental conditions affect life expectancy. As a result, our model produces a positive...

This paper offers a simple model that reconciles rivalrous claims about liberalization's impact on low-income agrarian economies; growth can accompany smallholder welfare reduction. The model developed here reverses the causality of Bhagwati's immiserizing growth model:price shocks cause welfare...