We study the impact of a minimum consumption requirement on the rate of economic growth and the evolution of wealth distribution. The requirement introduces a positive dependence between the intertemporal elasticity of substitution and household wealth. This dependence implies a transition phase...

The economic performance of the worlds two most populous countries China and India - in recent decades has transformed their own economies, as well the world economy, in a manner that is unprecedented. Their economic growth has helped lift millions of people out of dire poverty already and, if...