Available evidence suggests high intergenerational correlation of economic status, and persistent disparities in health status between the rich and the poor. This paper proposes a novel mechanism linking the two. We introduce health human capital into a two-period overlapping generations model....

This Paper develops a dynamic, theoretical model of demand for money under decreasing marginal impatience (DMI).Given certain conditions, the steady state is shown to be saddle-path stable and unique. It is shown that, under DMI, an increase in income inequality increases the aggregate demand...

A stylized fact of Indian economic history since 1950 is that the rate of growth of the economy has accelerated periodically and across policy regimes. In this paper we present a mechanism that can account for this behaviour in terms of cumulative causation through positive feedback. We write...

We discuss how child labor problems may persist in developing countries when adult mortality risks are endogenous. Children provide current consumption through child labor and future consumption via an informal social security arrangement. Poorer parents, unable to invest much in their health,...