Abstract We introduce endogenous probability of survival in the Keynes-Ramsey optimal growth model. An individual's probability of survival is assumed to be dependent on past levels of consumption. Endogenous probability of survival implies that the rate of time preference (or degree of...

We construct an overlapping generations model to study the effect of capital controls on human capital investments and the incidence of redistributive taxation in a growing economy. We argue that the conventional wisdom linking higher capital controls to lower growth is reproduced only when an...

Purpose – The purpose of this paper is to provide a theory that can explain the persistence of inequality in an economy where household agents are identical in terms of their preferences and have access to the same production technology. Design/methodology/approach – An overlapping...

We develop a formal model to explain the existence of dual distribution in franchising by assuming variations in location profitability. We posit that location quality dictates the choice between franchising and company ownership. We analyze the contract choice problem when location quality is...

Purpose – The purpose of this paper is to provide a theory that can explain the persistence of inequality in an economy where household agents are identical in terms of their preferences and have access to the same production technology. Design/methodology/approach – An overlapping...

We construct an overlapping generations model to study the effect of capital controls on human capital investments and the incidence of redistributive taxation in a growing economy. We argue that the conventional wisdom linking higher capital controls to lower growth is reproduced only when an...