This paper constructs a dynamic analysis of the growth and distribution models of Das and Ghate (2004) and Alesina and Rodrik (1994) when leisure is valued by agents. When leisure enters the utility function, we show that the tax rate on capital income chosen in a political equilibrium is lower...

We construct an overlapping generations model to study the effect of capital controls on human capital investments and the incidence of redistributive politics in a growing economy. We argue that the conventional wisdom linking higher capital controls to lower growth is reproduced only when an...

The existing literature on Indian growth finds no evidence of convergence across states. This represents a puzzle given the relatively free flows of capital, labor and commodities across state borders. We use a new data set of district level income and socio-economic data to explore the...

Total factor productivity of twenty OECD countries for a recent period (1971-2002) is explained using six different models based on the established literature. Traditionally, entrepreneurship is not dealt with in these models. In the present paper it is shown that – when this variable is added...

Questioning the underlying assumptions of the process of creative destruction, weconceptualize an alternative process of creative construction that may characterizethe dynamics between entrants and incumbents. We discuss the underlyingmechanism of knowledge spillover strategic entrepreneurship...

We present a model that explains how a cluster moves through a life cycle and why this movement differs from the industry life cycle. The model is based on three key processes: the changing heterogeneity in the cluster describes the movement of the cluster through the life cycle; the geographical...

In the present note an effort will be made for a contribution to economic theory by estimating an econometric relationshiop between the foreign direct investment [FDI] an total economy's entrepreneurship reward. This note is baded mainly on the next two papers...

This paper re-examines the link between new firm formation and subsequent employment growth. It investigates whether it is possible to have the wrong type of entrepreneurship - defined as new firm formation which leads to zero or even negative subsequent employment growth. It uses a very similar...

Economic growth has been a major preoccupation of economists, dating back at least to Adam Smith. William Stanley Jevons, for example, posited a growth theory based on the activity of sunspots. Robert Solow took a less exotic approach to explaining economic growth...