This paper investigates the long-run nexus between wealth inequality and aggregate output using a DSGE model in which wealth inequality endogenously affects individual entrepreneurship incentives, thereby influencing aggregate output. Our model passes the indirect inference test against the UK...

Migration can stimulate economic growth when managed strategically. Heterogeneous impacts require targeted and redistributive policies. Narratives of migration as purely a supply-side issue are overly reductive. Migration can serve as a deficit-financing alternative to tax hikes or spending...