We show how a Schumpeterian process of creative destruction can induce rational, herd behavior by entrepreneurs across diverse sectors as if fueled by "animal spirits." Consequently, a multisector economy, in which productivity improvements are made by independent, profit-seeking entrepreneurs,...

Au début des années 1990, la traditionnelle relation de compromis «équité-efficacité» a été mise en question par des preuves empiriques suggérant que l'inégalité des revenus avait un impact négatif sur la croissance. Cela a encouragé le développement de plusieurs théories...

We study the interactions among geographical mobility, unemployment, and home-ownership in an economy with heterogeneous locations, endogenous construction, and search frictions in the markets for both labour and housing. The decision of home-owners to accept job offers from other cities depends...