Financial Structure and Economic Welfare: Applied General Equilibrium Development Economics

This review provides a common framework for researchers thinking about the next generation of micro-founded macro models of growth, inequality, and financial deepening, as well as direction for policy makers targeting microfinance programs to alleviate poverty. Topics include treatment of financial structure general equilibrium models: testing for as-if-complete markets or other financial underpinnings; examining dual-sector models with both a perfectly intermediated sector and a sector in financial autarky, as well as a second generation of these models that embeds information problems and other obstacles to trade; designing surveys to capture measures of income, investment/savings, and flow of funds; and aggregating individuals and households to the level of network, village, or national economy. The review concludes with new directions that overcome conceptual and computational limitations.National Science Foundation (U.S.)National Institutes of Health (U.S.)Templeton FoundationBill & Melinda Gates Foundatio

Entrepreneurs, Chance, and the Deterministic Concentration of Wealth

In many economies, wealth is strikingly concentrated. Entrepreneurs–individuals with ownership in for-profit enterprises–comprise a large portion of the wealthiest individuals, and their behavior may help explain patterns in the national distribution of wealth. Entrepreneurs are less diversified and more heavily invested in their own companies than is commonly assumed in economic models. We present an intentionally simplified individual-based model of wealth generation among entrepreneurs to assess the role of chance and determinism in the distribution of wealth. We demonstrate that chance alone, combined with the deterministic effects of compounding returns, can lead to unlimited concentration of wealth, such that the percentage of all wealth owned by a few entrepreneurs eventually approaches 100%. Specifically, concentration of wealth results when the rate of return on investment varies by entrepreneur and by time. This result is robust to inclusion of realities such as differing skill among entrepreneurs. The most likely overall growth rate of the economy decreases as businesses become less diverse, suggesting that high concentrations of wealth may adversely affect a country's economic growth. We show that a tax on large inherited fortunes, applied to a small portion of the most fortunate in the population, can efficiently arrest the concentration of wealth at intermediate levels

Electric toothbrush vs. sonic toothbrush, the effectiveness on gingival inflammation: a randomized clinical trial

AIM: The aim of the study is to evaluate the efficacy of electric or sonic toothbrushes on periodontal inflammation. MATERIALS AND METHODS: A randomized, controlled, one-blind study was conducted. Patients in the test group used sonic toothbrushes (Sonicare FlexCare with ProResults brush head, HX6011, Philips Oral Healthcare Inc, Bothell, Wash), whereas those in the control group used electric toothbrushes (Oral B Professional Care Triumph 4000, Procter & Gamble, Cincinnati, Ohio). Periodontal status was recorded at baseline and 3 months. In total, 60 patients were recruited for the study at baseline. Plaque Index (PI) and Loe and Silness Gingival Index (GI) were used. Student's t- test repeated was used to compare the mean PI and GI scores obtained between the test and control groups at each time point. RESULTS: In total, 56 subjects completed the study. Significant differences were recorded between the two groups for periodontal parameters at 3 months. In addition, the indices of group Sonic were significantly reduced at 3 months compared to the Roto-oscillatory Group (P < .005). CONCLUSION: Sonic toothbrush reduced parameters of periodontal inflammation more effectively than the electric toothbrush

Wealth, Tastes, and Entrepreneurial Choice

The nonpecuniary benefits of managing a small business are a first order consideration for many nascent entrepreneurs, yet the preference for business ownership is mostly ignored in models of entrepreneurship and occupational choice. In this paper, we study a population with varying entrepreneurial tastes and wealth in a simple general equilibrium model of occupational choice. This choice yields several important results: (1) entrepreneurship can be thought of as a normal good, generating wealth effects independent of any financing constraints; (2) nonpecuniary entrepreneurs select into small-scale firms; and (3) subsidies designed to stimulate more business entry can have regressive distributional effects. Despite abstracting from other important considerations such as risk, financing constraints, and innovation, we show that nonpecuniary compensation is particularly relevant in discussions of small businesses