Social comparisons, inequality, and growth
Research into the interaction of inequality and growth when people are assumed to be concerned about their relative status has used a basic model with households living for two periods that only earn income in the first period and must decide how much to invest in capital. It was established that a rise in a society's general concern for relative status diminishes growth, while a rise in inequality also diminishes growth and a rise in the concern for relative status enhances the negative effect of inequality on growth. It appears that the introduction of concerns for relative status into standard growth models can provide valuable information about the link between inequality and growth.
Publication Name: Journal of Institutional & Theoretical Economics
Financial development and the instability of open economics
The effectiveness of a stylized model in a dynamic open economy and the cash flow constraints being tighter at the lower level than at top level. The paper tests the theory that economies in an intermediate development stage are more unstable and vulnerable to credit constraints than at either end of the levels. The exception to the destabilization is the foreign direct investment, which remains stable.
Publication Name: Journal of Monetary Economics
Competition, financial discipline and growth
A model is presented depicting the interrelationships between individual firm management behavior and economic innovation and growth. Topics include industry policy, competition policy, conservative entrepreneurship and high and low levels of external finance.
Publication Name: Review of Economic Studies
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