This paper constructs a simple model of endogenous growth with financial frictions and firm heterogeneity. In the presence of financial constraints and heterogeneity in production efficiency of firms, the firms whose efficiency exceeds the cutoff level produce and the entrepreneurs who own those...

This paper investigates whether the external consumption habit can be a source of indeterminacy in a one-sector growth model when the labor supply is elastic. When there is a proper habit effect with a positive intertemporal elasticity of substitution, we find that the model exhibits...

This paper presents an extension of a static model of economic conflict analyzed by Hirshleifer (1991, 1995) and Skaperdas (1992) to an infinite horizon differential game. Our aim is to highlight the strategic role of appropriation among a smaller group of agents in an intertemporal context. The...

This paper explores the effect of consumption externalities on equilibrium dynamics of a standard neoclassical growth model in which there are two types of agents. To emphasize the presence of heterogeneous agents, we distinguish intergroup consumption externalities from intragroup consumption...

This paper explores the relation between capital accumulation and transformation of industrial structure in a small open economy. Using a three-sector neoclassical growth model with non-homothetic preferences, we examine the dynamic behaviour of the small country in the alternative trade...