The literature on income inequality and growth has considered credit market imperfection to be a key factor in persistent inequality. This paper provides a simple example in which income inequality can persist even if the credit market is perfect

Constructing a simple model that includes the price of education, this paper shows that the educational expenditure of rich households could prevent poor households from escaping poverty. The paper offers an explanation for persistent inequality

This paper investigates how population aging affects economic growth in a general equilibrium model of life cycle savings combined with endogenous growth. It shows that population aging is not necessarily a negative factor for growth. Introducing an old age pension system into the model, the...