This paper examines the continuous time optimal consumption and portfolio choice of an investor having an initial wealth endowment and an uncertain stream of income from non-traded assets. The income stream is not spanned by traded assets and the investor is not allowed to borrow against future income, so the "nancial market is incomplete. We solve the corresponding stochastic control problem n...

Trends in aggregate growth and poverty reduction hide a multiplicity of development processes at the local level. The analysis reported this paper exploits unique panel dataset maps covering almost 2400 municipalities Mexico spanning 22 years, first, to test hypothesis that there is within-country income convergence. Second, through decomposition convergence elasticity, investigates whether con...

The causes behind achieving different economic growth rates have been a major focus of economic research for a long time now, the result of which are various growth theories: from the Harrod-Domar model based on the capital accumulation to the modern, endogenous theories that emphasize the role of technological progress (Romer, 1986, 1990 ) and human capital (Lucas, 1988). It is well known that...

This paper surveys the recent literature on convergence across countries and regions. I discuss the main convergence and divergence mechanisms identified in the literature and develop a simple model that illustrates their implications for income dynamics. I then review the existing empirical evidence and discuss its theoretical implications. Early optimism concerning the ability of a human capi...

The measurement of inequality and its determinants are major tasks within the economic literature. main objectives this paper to identify patterns convergence in income European Union countries investigate factors behind formation clubs. For those purposes considering Gini index during period 2007–2018, club approach an ordered logit model employed. results show four clubs divergent countries. ...