strong incentives for product innovations (new luxuries). We show that the inequality-growth relationship depends on which …We study a model of endogenous growth where firms invest both in product and process innovations. Product innovations … balanced growth path. …

In this chapter we inspect economic mechanisms through which technological progress shapes the degree of inequality … among workers in the labour market. A key focus is on the rise of US wage inequality over the past 30 years. However, we … also pay attention to how Europe did not experience changes in wage inequality but instead saw a sharp increase in …

The theoretical literature on endogenous growth and international trade suggests that comparative advantage is …

importantly, will it have an impact on steady-state growth rates? This paper provides empirical evidence showing how countries … have exhibited substantial increases in their growth rates over the past century while concurrently increasing the extent … can have on long-run growth rates. Among the results of the model, unilateral liberalization by one country will generate …

Is inequality harmful for growth? We suggest that it is. In a society where distributional conflict is important … negative relation between inequality and growth. After a comprehensive sensitivity analysis, we conclude that our findings are … activities which promote growth, such as the accumulation of capital and productive knowledge. In this paper we formulate a …

distribution of income affects the incentive to innovate and hence long-run growth. In general, less inequality tends to discourage …We utilize Schmookler’s (1966) concept of demand-induced invention to study the role of income inequality in an … endogenous growth model. As rich consumers can satisfy more wants than poor consumers, both prices and market sizes for new …

This paper reviews the cross-country record of economic growth, using as organizing framework how economic theory has … guided that empirical analysis. The paper argues that recent studies of economic growth - both empirical and theoretical … - distinguish from previous work in three distinct ways: 1. An explicit focus on cross-country growth and development experiences; 2 …

investigated separately. This paper proposes a theoretical framework in which trade patterns and growth rates are jointly … contract enforcement drives the ownership decision, which affects R&D returns, research intensity and growth. Balance of …