(with Tapan Mitra and Rahul Roy), Journal of Economic Theory 53, 12-50, 1991.
Summary. This paper is concerned with the qualitative properties of optimal intertemporal programs in a model of point-input flow-output capital theory, when future utilities are discounted. Under a mild condition on the flow-output vector, we establish that optimal programs for every discount factor and every initial state (other than a unique stationary optimal state) will exhibit non-convergence.
(with Dilip Mookherjee), Review of Economic Studies 70, 369-393, 2003.
Summary. When human capital accumulation generates pecuniary externalities across professions, and capital markets are imperfect, persistent inequality in utility and consumption is inevitable in any steady state.
(with Garance Genicot) Econometrica 85, 485-519, 2017. Online Appendix. 2009 version.
Summary. This paper develops a theory of socially determined aspirations, and the interaction of those aspirations with growth and inequality. The interaction is bidirectional: economy-wide outcomes determine individual aspirations, which in turn determine investment incentives and social outcomes. Thus aspirations, income, and the distribution of income evolve jointly.