The study uses aggregate and manufacturing sector data for a group of ten OECD countries for the period 1971 to 1995 to estimate a system of two equations implied by a model of R&D-induced growth in steady state. These equations relate R&D intensity to productivity growth and the latter to...

To understand the link between inequality and development, a decomposition of the Gini index by income sources is used that emphasizes the role of three components measuring the impact of the shares of the sources, the degree to which they are unequally distributed, and their correlation with...

Microfinance programs are often characterized by progressive lending. A typical borrower receives at first very small amounts, which increase with good repayment conduct. The author rationalizes this feature of microfinance. It is shown that there is a strong tendency to split up projects into...

The paper examines the impact of the income distribution in a less-developed country (LDC) on its patterns of trade, through its influence on home market demand patterns. In a learning-by-doing model with nonhomothetic preferences, the authors show that import substitution under low inequality...

The paper investigates a three-country duopoly model. Two developed countries have large markets and one developing country has a cost advantage. The author finds that strategic complementarity in location choice yields multiple equilibria. One is a cost-oriented agglomeration of firms in the...

Evaluation of the poverty impact and targeting performance of a given social program may depend on how other programs are treated in the analysis. Using well-known results from cooperative game theory, this paper proposes an empirically simple yet theoretically sound method for allocating...

The paper examines the relationship between economic growth, tax policy, and distribution of capital and labor ownership in a one-sector political-economy model of endogenous growth with productive government spending financed by a proportional tax on capital income. The analysis shows that...

The paper provides some empirical evidence for the relationship between average firm size and the relative transaction efficiency and per capita income as hypothesized by Liu and Yang in Journal of Economic Behavior and Organization 42(2) (2000):145-65. The empirical data of 11 industries in...

The paper explores how competition from international trade affects gender wage discrimination in two open economies. According to neoclassical theory, if discrimination is costly, then increased industry competitiveness from international trade lessens the incentive for employers to...

The paper explains most, if not all, observations made by the empirical literature regarding the behavior of skilled and unskilled real wages in the United States, especially those since 1980. Generalizing the Stopler-Samuelson theorem, the authors show that the nontraded sector is critical to...