This paper presents a simple model of optimal sustainable growth in which the environmental stock enters consumers' preferences and production possibilities depend upon the use of produced physical capital and the use of a flow of productive services provided through the exploitation of the...

We present an optimal endogenous growth model with an environmental asset which delivers a direct social utility value. The efficiency of the production services provided by the environmental asset directly depend on past capital accumulation. Such an assumption corresponds to assuming that past...

In this paper skill-biased technological change is linked with endogenous labor supply which allows for unemployment. This is a novel approach, as the literature on skill-biased technological change considers inelastic labor supply. Elastic labor supply allows us to explain how the observed...

This paper uses annual data for the period 1970-2006 in order to estimate and investigate the evolution of the Mexican informal economy. In order to do so, we model the informal economy as a latent variable and try to explain it through relationships between possible cause and indicator...