This paper develops a simple endogenous growth model of human capital accumulation with social status effects. These include status from job quality, as indicated by their relative level of education, as well as 'keeping up with the Joneses' in consumption. Symmetrically held, social aspirations...

This paper develops a simple two-region endogenous growth model in which individuals must choose where to reside and the government decides the amount of productive public investments for each area. In such a framework, we analyze the implications of a change in government’s regional policy on...