The Frankel, Romer and Lucas theories of endogenous growth rest on the assumptions of knowledge-based externalities and price-taking representative agents. It is argued that, in a context of long-run growth, these assumptions are mutually incompatible, that representative agents will cooperate...

We offer a new proof of the maximum principle, by using the envelope theorem that is frequently used in the standard microeconomic theory. Copyright Springer-Verlag Berlin Heidelberg 2003

The Hicks-Ikema theorem, that a uniform expansion of a trading country's production set must benefit its trading partner if the preferences of the expanding country are homothetic, has been demonstrated under assumptions of the Lerner-Samuelson kind. It is shown here that the theorem remains...

This paper presents a pair of new equivalent conditions for a given n x n matrix of distributive shares to satisfy the Stolper-Samuelson criterion. Specifying n as four and making use of barycentric coordinates, the author gives geometric characterization to the equivalent conditions. Copyright...

Consider the optimal time path of a tax on capital income, the proceeds of which are transferred to labor in a lump sum. It is known from earlier open-loop formulations that, if the optimal rate of tax converges to a point, it converges to zero, implying that, in the long run, a tax on capital...

This paper provides a model to consider the conditions under which an acceptance of foreign capital is welfare enhancing in a multi-commodity multi-factor framework. Contrary to the pessimistic conventional wisdom of capital imports and welfare, we provide a justification for the acceptance of...