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Inequality and Economic Growth: The Perspective of the New Growth Theories
(American Economic Association, 1999)
We analyze the relationship between inequality and economic growth from two directions. The first part of the survey examines the effect of inequality on growth, showing that when capital markets are imperfect, there is ...
Competition, Financial Discipline and Growth
(Oxford University Press (OUP), 1999)
This paper develops a general equilibrium model of technological adoption in an economy populated by 'satisficing' entrepreneurs whose main objective is to minimise innovative effort while keeping the firm alive. In such ...
Dualism and Macroeconomic Volatility
(MIT Press, 1999)
This paper develops a simple macroeconomic model that shows that combining capital market imperfections together with unequal access to investment opportunities across individuals can generate endogenous and permanent ...
Is Europe Going Too Far?
(Elsevier, 1999)
This paper examines the process of European political integration. We start with a political-economy model of monetary policy, illustrating a general principle: economic integration requires setting up European institutions ...
Egalitarianism and the Returns to Education during the Great Transformation of American Education
(University of Chicago Press, 1999)
Secondary school education greatly expanded in the United States from 1910 to 1940, setting its schooling attainment apart from that of all other countries. Barely 10 percent of youth were high school graduates in 1910, ...
By Force of Habit: A Consumption-Based Explanation of Aggregate Stock Market Behavior
(University of Chicago Press, 1999)
We present a consumption‐based model that explains a wide variety of dynamic asset pricing phenomena, including the procyclical variation of stock prices, the long‐horizon predictability of excess stock returns, and the ...
An Easier Way to Calibrate
(Elsevier, 1999)
Forecasts are said to be calibrated if the frequency predictions are approximately correct. This is a refinement of an idea first introduced by David Blackwell in 1955. We show that “<i>K</i>-initialized myopic strategies” ...
Payoff Information and Self-Confirming Equilibrium
(Elsevier, 1999)
In a self-confirming equilibrium, each player correctly forecasts the actions that opponents will take along the equilibrium path, but may be mistaken about the way that opponents would respond to deviations. This paper ...
Public Goods and Ethnic Divisions
(MIT Press, 1999)
We present a model that links heterogeneity of preferences across ethnic groups in a city to the amount and type of public goods the city supplies. We test the implications of the model with three related data sets: U. S. ...
Budget Institutions and Fiscal Performance in Latin America
(Elsevier Science B.V., 1999)
In this paper, we collect detailed information on the budget institutions of Latin American countries. We classify these institutions on a "hierarchical"/"collegial" scale, as a function of the existence of constraints on ...