It is assumed that education simultaneously affects growth and wage inequality. Human capital is taken as lumpy, and … education policy has a direct bearing on growth, the number of high-skilled people, and wages. It is shown that the optimal … policy for the unskilled is Rawlsian and implies high after-tax returns on capital and high growth, whereas the skilled …

Over the last two decades there has been a growing interest in determining the impact of inequality on growth. The … structure of the data, the sample coverage, the type of distribution, the definition of income, and the estimation technique …. These results suggest that there is not one but several underlying effects of inequality on growth, which are likely to …

affects income distribution and growth. We find that (1) corruption affects income distribution in an inverted U-shaped way …, and (3) that even after correcting for measurement errors, corruption still retards economic growth. But the effect is far … less pronounced than the one found in Mauro (1995). Moreover, corruption alone explains little of the continental growth …

This paper reconsiders the political economy approach to growth and distribution according to which (1) rising … real-world element to the basal models. The political economy models of growth and distribution, as well as the specific … taxation; and (3) higher distortionary taxes reduce economic growth. We present a variety of theoretical arguments …

This paper analyzes the link between long-run economic growth and policy that depends on important economic … fundamentals. In simple growth regressions the measured policy effects would then generally be biased. Using a widely quoted … theoretical model, the signs of the biases are derived. It is shown that the usually reported effects on growth of tax …

In this paper, we have obtained closed-form solutions in Cass-Koopmans growth models with heterogeneous agents. The … relationship between the form of production function and the dynamics of income distribution is made explicit. We then use this … relationship to determine what production structure is simultaneously consistent with facts on growth and income inequality. Our …

with the Arrow/Romer approach to endogenous growth to analyze the interaction of risk, growth, and inequality, the latter … also endogenously determined in equilibrium. We derive conditions on existence and nonexistence of balanced growth paths …. Major results include that growth, inequality, and risk are positively related in our model, but we also identify a hump …

This article analyzes the relationship between economic growth, income distribution and real exchange rate within the …

Contrary to a popular belief, the most popular Ak growth models display transitional dynamics once the representative … long transitional period before it converges to its balanced growth path. During the transition period, aggregate …