This paper illustrates how convergence equations can be used to analyze the dynamics of the income distribution, thus overcoming some of the limitations of this methodology noted by Quah. Using panel data for a sample of OECD countries, we estimates a growth equation which relates the growth...

We examine an economy where human capital is the cause of growth. Individuals are altruistic and give their offspring education and bequests. We study the incidence of three education systems on the human capital of the offspring. We show that the effects of an education subsidy on growth are...

We examine an economy where human capital is the cause of growth. Individuals are altruistic and give their offspring education and bequests. We study the incidence of three education systems on the human capital of the offspring. We show that debt may be good for growth. We also show that the...

The Kingdom of Lesotho’s 2005 Article IV Consultation reports that the government’s fiscal position and the external current account have improved markedly. The authorities are preparing an action plan, in collaboration with development partners, to improve the business climate....

Paraguay’s Fourth Review Under the Stand-By Arrangement and Request for Waiver of Performance Criteria are examined. The main challenge is to consolidate the macroeconomic gains achieved thus far and deepen structural reform. A stable macroeconomic environment will be the key for creating...

This 2005 Article IV Consultation highlights that the Algerian economy continues to benefit from abundant and increasing hydrocarbon revenues. Real GDP growth is expected to continue at about 5 percent in 2005, led by increased output in the hydrocarbon sector and sustained activity in the...

Iceland’s 2005 Article IV Consultation reports that new projects have rekindled rapid growth and the economy is exhibiting signs of overheating, with imbalances evident in inflation, the current account, and external debt. GDP grew at an average rate of 3.8 percent between 1995 and 2004,...

St. Vincent and the Grenadines’s 2003 Article IV Consultation reports that it had moderate levels of public sector debt and debt service during the 1990s. To reduce growth volatility, since the mid-1990s, the government has attempted to implement an economic diversification program...

That openness and economic growth move together is a propostition which is well supported by empirical evidence. This study is a follow-up of our earlier work in which the emphasis was on the trade dimension of openness. In this paper, we focus on foreign investment in the context of the Indian...