This paper studies a model of the distribution of income under bounded needs. Utility derived from any given good reaches a bliss point at a finite consumption level of that good. On the other hand, introducing new varieties always increases utility. It is assumed that each variety is owned by a...

We construct an endogenous growth model with automation and horizontal innovation in an economy with low- and high-skill workers. Automation enables the replacement of low-skill workers with machines, increasing the skill premium and possibly decreasing low-skill wages. Horizontal innovation...

This paper explores the relationship between product innovation and consumption inequality. We employ a modified version of the agent-based macroeconomic model in Georges (2011, 2015). A rise in rents accruing to salaried workers can shift both production and R&D spending toward products...

Based on the advance-retreat course model, a growth model under environmental pressure, this paper builds an economic growth model that focuses on the aggregation of capital and innovation with environmental pressure. Importantly, the paper presents methods for computing the optimal quantity of...

We sketch a visionary strategy for Europe in which full employment is quickly regained by 2020, income inequality is reduced and the economies are more sustainable. We call this scenario "vibrant". It is contrasted with what would happen if present policies continue within the European Union...

The present paper assesses the interactions between innovation and economic institutions within the context of the inequality-growth nexus. By carrying out fixed effects estimations on a cross-country panel, we find that both institutional quality and innovations improve economic growth at the...