In this paper, we analyse anew the relationship between aggregate income and consumption in the United Kingdom. Our analysis entails a close examination of the structure of the data, for which we employ a variety of spectral methods which depend on the concepts of Fourier analysis. We discover...

Within the context of the neoclassical growth model I investigate the implications of (initial) endowment inequality when the rich have a higher marginal savings rate than the poor. More unequal societies grow faster in the transition process, and therefore exhibit a higher speed of convergence....

This paper considers value functions for maximization problems where the objective function is maximized subject to several constraints. I show that such value functions exhibit diminishing marginal rates of substitution (MRS) between the resource endowments which define the constraints. For the...