*Following bubble asset crash, as on Japon in the 90´s and after the crisis, a great recession of economic activity took place and waves of job destruction were increasing. In this paper, a model with tax policy is presented to demonstrate that the asset bubbles decrease the unemployment level and increase the economic activity. We consider an OLG model with transfers, financed by tax burden on capital and labor income. Our results indicate that the bubble promotes capital stock and reduces unemployment level if the capital tax rate is high, the redistribution is more in favor of young households and/or the tax rate on labor income is low. Indeed, in the presence of bubble, these conditions modify the relative cost of labor and capital and incite firms to favor the use of labor, due to the substitution effect. The increase of the transfer to the young investors and/or the increase of the level of employment allows the economy to sustain a higher capital stock.

**This paper asks why children’s nutritional status in urban slum household is worse than in non-slum households and analyzes to what extend this can be explained by lower means and returns of key socio-economic factors. Since most studies focus on urban-rural differentials, little evidence on socio-economic determinants of children’s health within urban areas, i.e. between slums and non-slum households exists. However, children’s nutritional status as well as its determinants vary greatly within urban areas. The investigation follows the approach of Smith et al. (2005) which analyze differentials in the means and returns of the socio-economic determinants in child malnutrition between urban and rural regions, using DHS data of African, Latin American and South-East Asian developing countries. The first preliminary results from Africa suggest that there is strong association between children’s nutritional status and household wealth but that the relationship is not significantly different between slum and non-slum households. Additionally, although mean differences in physical endowments (access to water, sanitation and electricity) are quite large between slum and non-slum households, they are not significantly correlated with child nutritional status.