Neoclassical and endogenous growth models yield strikingly different predictions regarding the determinants of long-run growth rates and their implications for long-run cross-country convergence characteristics. On the one hand, Mankiw, Romer, and Weil (1992) and Barro and Salai-Martin (1995)...

This paper analyzes the growth and inequality tradeoff for a small open economy where agents differ in their initial endowments of capital stock and international bond-holdings. Our analysis focuses on the distributional impacts of different structural shocks through their effects on agents'...

Endogenizing labor supply leads to fundamental changes in the equilibrium structure of the AK growth model. The balanced growth equilibrium can be described in terms of two tradeoff loci relating the equilibrium growth rate to the fraction of time devoted to leisure. The implications of...