In this paper, we characterize the relationship between the initial distribution of human capital and physical inheritances among individuals and the long-run distribution of these two variables. In a model with indivisible investment in education, we analyze how the initial distribution of...

In this paper, we characterize the relationship between the initial distribution of human capital and physical inheritances among individuals and the long-run distribution of these two variables. In a model with indivisible investment in education, we analyze how the initial distribution of...

We analyze the relationship between income inequality and structural change in the sectoral composition of the tradable and the non-tradable sectors. We construct a small open economy two sector model where preferences imply non-linear Engel curves and we show that the relationship between...