This paper examines how economic stratification affects inequality and growth over time. It studies economies where heterogenous agents interact through local public goods or externalities (school funding, neighbourhood effects) and economy-wide linkages (complementary skills, knowledge...

The time series properties of German GDP have been re-examined in recent research. Extending the sample to include GDP data from 1950 onwards, some researchers argued in favor of a trend-stationary rather than difference stationary representation of real log GDP. I show that this conclusion is...

This paper examines interactions between education policy and growth. The analysis is carried out in an OLG model with two types of individuals: skilled and unskilled.

This article focuses on the scope for indeterminacies that originate from global capital stock externalities in the technological set of the reference model of the multisector optimal growth literature. These phenomena are shown to introduce a new class of intersectoral dependency in competitive...

If capital stock is considered in a broad sense, to include both physical and intellectual capital, the law of diminishing returns may not apply and the higher the investments in intangible assets the higher a country's growth rate. The so-called AK growth models by taking into account both...

We suggest a three-pronged approach to an enhanced growth strategy for India. The first prong is export-led growth. Here the lessons of China are particularly instructive, since China achieved in the past fifteen years the kind of export-led growth that India could have achieved, but failed to...

Whether or not the marginal product of capital (MPK) differs across countries is a question that keeps coming up in discussions of comparative economic development and patterns of capital flows. We use easily accessible macroeconomic data to shed light on this issue, and find that MPKs are...

This paper investigates the impact of Information and Communication Technologies (ICT) on growth in an economy, consisting of three sectors, ICT-producing, ICT-using and non-ICT-using. The benefits from ICT come from the falling prices of the ICT-using sector's good, which is used for the...

This paper investigates the relationship between growth and inequality from a demographicpoint of view. In an extended model of the accidental bequest with endogenous fertility, weanalyze the effects of a decrease in the old-age mortality rate on the equilibrium growth rateas well as on the...

We investigate the welfare properties of the one-sector neoclassic growth model with uninsurable idiosyncratic shocks. We focus on the constrained efficiency notion of the general equilibrium literature, and we demonstrate constrained inefficiency for our model. We provide a characterization of...