This paper exposes a simple endogenous growth model with human capital accumulation in which competition in the educational system can lead to fast output growth with a simultaneous decline in welfare along a balanced growth path. This illustrates the idea that satisfaction is not...

This paper studies under which conditions a cross-section regression yields unbiased estimates of the parapeters of an individual dynamic model with fixed effects and individual-specific responses to macro-shocks. We show that the OLS estimation of a system of non stationary variables on a...