This paper investigates the effects of taxation on the distributions of income and wealth and on the welfare of heterogeneous households. I first demonstrate that the tails of income and wealth distributions converge to a Pareto distribution in a Bewley model in which households bear...

This paper investigates the effect of exogenous entry barriers on productivity growth, using an R&D-based endogenous growth model. When firms are heterogeneous in their innovation efficiency levels, we found that a reduction in entry costs lowers the relative importance of a selection mechanism...