This paper evaluates the aggregate impact of air pollution regulations introduced by the US Environmental Protection Agency in the early 2000s. We first provide regression evidence on the regulations' effects across industries and local labor markets. We then use these results to calibrate a...

In this paper, we analyze the emergence and persistence of poverty traps and study how wide-spread poverty and the unequal distribution of income can slow down the accumulation process and lead to steady-state equilibria characterized by low aggregate output levels. We define poverty as a state...