This research develops a theory about the role of within-country income inequality in the emergence of overtaking in economic performance among countries. The theory captures two opposing effects of inequality on factor accumulation and suggests that the qualitative change in their combined effect is a prime cause of overtaking. Because of the initial dominance of the positive effect of inequality, a less egalitarian economy follows a higher growth path in the short run, with a lower growth path in the long run. It also is shown that divergence or convergence may arise instead of overtaking, depending on the initial levels of development and inequality.

An approximate model for the study of platoon formation on two-lane highways is discussed in detail. The model assumes that the two-lane highway is divided in each traffic direction into alternating road sections of fixed lengths. The passing in one type of section is unrestricted and the passing in the other one is prohibited. It is assumed that there are slow and fast vehicles on the highway and that inputs follow independent Poisson processes. The results include the distribution of the number of vehicles in a platoon and the average speed of a typical fast vehicle.