This paper presents a simple model to examine the implication of credit market imperfections when considering the huge variation of agricultural labor productivity across countries. The development of credit markets enables more agents to acquire skills to work in non-agricultural sectors. The...

This paper presents an extension of the model in Jaimovich [Jaimovich, E., 2010. Adverse selection and entrepreneurship in a model of development. Scandinavian Journal of Economics 112, 77–100] and generalizes his results by relaxing key assumptions in his analysis.

We consider an overlapping generations model with public education and social security financed by labor income taxation, in which the overall size of these policies is determined in a repeated majority voting game. We investigate the interaction between these policies and economic development...