We demonstrate by mathematical analysis and systematic computer simulations that redistribution can lead to sustainable growth in a society. In accordance with economic models of risky human capital, we assume that dynamics of human capital is modeled as a multiplicative stochastic process which, in the long run, leads to the destruction of individual human capital. When agents are linked by fu...

When the assumption of constancy fails the in-sample fit of a model may be a poor guide to exante forecast performance. We exposit a number of models, methods and procedures that both illustrate the impact of structural breaks, or non-constancy, on forecast accuracy, and offer an improved forecast performance. We argue that a theory of forecasting that allows for strutural breaks is feasible, a...