We derive necessary and sufficient conditions for the occurrence of ergodic oscillations and geometric sensitivity in a two-sector model of economic growth with labor augmenting externalities. We transform the Euler equation into a first order backward first order equation. Factor intensity...

This paper studies a two-sector endogenous growth model with <p> labour augmenting externalities or Harrod-Neutral technical change. The <p> technologies are general and the preferences are of the CES class. If con- <p> sumers are su±ciently patient, ergodic chaos and geometric sensitivity to <p> initial...</p></p></p></p>

We develop a two-sector model to analyze which kind of social <p> organization generates trust. Social capital is de…ned as trust. We examine two <p> communities: the bedroom community in which people commute long distance <p> to work and the virility community in which people do not commute to work. <p>...</p></p></p></p>

We study how trust is generated in society. In a two-sector <p> model, we analyze two communities. In the bonding community people do not <p> trust people outside their regular networks. In the bridging community people <p> choose to trust strangers when they meet them. The hypothesis is that when <p> trust...</p></p></p></p>

We develop a two-sector model to analyze which kind of social <p> organization generates social capital. The hypothesis is that social capital must <p> be added as an important production factor when considering decentralization <p> of production. Thus, market centralization processes in a capitalist...</p></p></p>

This article considers a two-sector model of economic growth with “labour-augmenting” intersectoral external effects stemming from the aggregate capital stock. It is shown that equilibrium balanced growth paths with a non-trivial labour allocation scheme become available. A set of sufficient...

In recent decades, most developed countries have experienced a simultaneous increase in income inequality and management compensation. In this paper, we study the relation between management compensation and firm-level income dynamics in a general equilibrium model. Empirical estimation, of the...

In recent decades most developed countries have experienced an increase in income inequality. In this paper, we use an equilibrium search framework to shed additional light on what is causing income distribution to change. The major benefit of the model is that it is can accommodate shocks to...

We analyse the evolutionary stability of a preference for reciprocity in the Prisoner's Dilemma. A distingushing and, as we argue, plausible, feature of the analysis is that reciprocal players are not assumed to be able to coordinate on mutual cooperation with probability one. We show how two...