We examine spatial convergence in biological well-being in the Habsburg Monarchy circa 1890-1910 on the basis of evidence on the physical stature of 21-year-old recruits disaggregated into 15 districts. We find that the shorter was the population in 1890 the faster its height grew thereafter....

We argue that with interdependent utility functions growth can lead to a decline in total welfare of a society if the gains from growth are sufficiently unequally distributed in the presence of negative externalities, i.e., envy.