We introduce distributive justice into a simple model of growth and distribution. Two groups ("classes") of otherwise identical, capital-rich and capital-poor individuals ("capitalists") and ("workers") are in conflict over factor (labour-capital) shares. Capitalists' (workers') ideal labour...

We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, growth and regional inequality. We provide conditions for existence and uniqueness of a spatial equilibrium, and for the endogenous emergence of industry clusters. Spatial...

This paper develops a simple two-region endogenous growth model in which individuals must choose where to reside and the government decides the amount of productive public investments for each area. In such a framework, we analyze the implications of a change in government’s regional policy on...

We introduce distributive justice into a simple model of growth and distribution. Two groups (‘classes’) of otherwise identical, capital-rich and capital-poor individuals (‘capitalists’) and (‘workers’) are in conflict over factor (labour-capital) shares. Capitalists’ (workers’)...

To shed lights on growth, distribution and the relationships between the two, we develop a growth model with heterogeneous individuals who care about social status. Individuals' heterogeneity stems from two sources: their innate skills and their degree of ambition. While the willingness of...

We employ a convex model of growth, nesting both a neoclassical and endogenous growth regimes, as a framework for studying the contributions of capital accumulation to the widely documented divergence of international growth experiences. In particular, we study the importance of effective...

Standard growth theory is based on atomistic agents with no strategic interactions among them. In contrast, we model growth as resulting from a one-off, strategic game between workers and owners of capital (capitalists) on factor shares, in an otherwise standard AK growth model. The resulting...

We introduce status in the most standard (canonical) macro model that is able to provide an analysis of growth and distribution. We consider the question of whether status considerations enable the model to meet some important empirical findings (which we review) related to rising labour supply...