This paper departs from John Roemer's theory of equality of opportunities. We seek to determine what part of observed outcome inequality may be attributed to differences in observed "circumstances", including family background, and what part is due to "personal efforts". We use a...

We study efficiency properties of allocations and equilibria in dynamic stochastic economies with finitely lived agents. Efficiency is assessed to the concept of interim optimality which considers the agents' welfare at their birth date in every possible circumstance which may occur at that...

This paper analyzes how political institutions, wealth distribution and economic activities affect each other during the process of development. A simple general equilibrium model of rent-seeking political elites with two productive sectors (modern and traditional) is presented.