There is more or less a consensus that financial repression or the programme of directed credit leads to low levels of bank-profit and thereby threatens solvency of banks in the long run. Rationale of directed credit lies in the divergence between the patterns of private and social profitability...

In this note, we use a technique analogous to Xie’s method (1994) to solve analytically the Lucas model with externality in a specific parametric case. In particular, we characterize the shape of imbalance effects in this model. Our results are entirely consistent with the findings of the...

We address the issue of optimal growth when standard-of-living aspirations are transmitted from one generation to the next. We derive the condition for the optimal solution to be stable in the saddle-point sense and show that this optimal solution may display damped oscillations even when the...

This paper considers the implications for poverty measurement of the observed fact that any individual's level of deprivation is a function not only of his own income, but of the general level of prosperity of the group to which he is affiliated. Individual deprivation functions are specialized...

This paper explores how individual preferences for income redistribution are influenced by social capital, which is measured by rates of participation in community activities. Individual-level data and place of residence data were combined to examine how social capital accumulated in residential...

This paper explores how social capital influences individual preferences for income redistribution. Social capital is measured by participation in community activities. After controlling for individual characteristics, I find that people are more likely to express preferences for income...

This paper explores how individual preferences for income redistribution are influenced by social capital, which is measured by rates of participation in community activities. I combined individual-level data and place of residence data to examine how social capital accumulated in residential...