This paper extends the Lucas (1978) model of firm formation by taking into account a normalised CES function in the production process. In a general equilibrium framework it is proved that there is an inverse relation between the value of the elasticity of substitution and average firm size....

Pro-Poor Growth (PPG) is the vision of combining high growth rates with poverty reduction. Due to the myriad of possible determinants of growth and poverty a unique theoretical model for guiding empirical work on PPG is absent, though. Bayesian Model Averaging is a statistically robust framework...

Recent empirical studies on the inflation-growth-relationship underline that inflation has negative growth effects already under relatively modest rates. Most contributions to monetary growth theory, however, have difficulties in explaining such a pattern. It is shown in this paper that this...