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This essay reviews the relationship between natural-resource abundance and economic growth around the world, and presents some new results. The principal reasons why resource-based production can inhibit economic growth over long periods are traced to the Dutch disease, neglect of education,...
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We study the effects of time-using rent-seeking activities on the macroeconomic allocation and the economic growth rate. We formulate a highly stylized three-sector general equilibrium model with overlapping generations of individuals. The production side features one sector producing the...
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What are the long-term economic effects of a more equal distribution of wealth? We exploit variation in historical … inheritance rules for land in Germany. In some German areas, inherited land was to be shared or divided equally among children … right-shifted skill, income, and wealth distribution. Higher top incomes and top wealth in equal division areas coincide …
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We study a growth model with two types of agents who are heterogeneous in their degree of family altruism. We prove that every equilibrium path converges to a unique steady state, and study the effect of altruism on the properties of steady-state equilibrium. We show that aggregate income is...
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