We examine the relationship between income growth and saving using both cross-country and household data. At the aggregate level, we find that growth Granger causes saving, but that saving does not Granger cause growth. Using household data, we find that households with predictably higher income...

We examine the relationship between income growth and saving using both cross-country and household data. At the aggregate level, we find that growth Granger causes saving, but that saving does not Granger cause growth. Using household data, we find that households with predictably higher income...

Standard growth models take the form of a representative consumer maximizing an intertemporally separable utility function. We explore the implications of one kind of nonseparability by allowing utility to depend on a comparison of consumption to a quot;habit stockquot; determined by past...

We model growth in dictatorships facing each period an endogenous probaibility of "political catastrophe" that would extinguish the regime's wealth ability. Domestic capital exhibits a bifurcation point determining economic growth or shrinkage. With low initial domestic capital the dictator...

We model growth in dictatorships facing each period an endogenous probability of ``political catastrophe'' that would extinguish the regime's wealth extraction ability. Domestic capital exhibits a bifurcation point determining economic growth or shrinkage. With low initial domestic capital the...