David Lagakos Todd Schoellman
Development accounting is a simple tool with potentially powerful insights. It asks whether the measured differences in inputs between developing and developed countries can account for the gap in GDP per worker. Twenty years ago, Francesco Caselli famously argued that the best estimate was “no”. This column revisits that conclusion in light of two decades of intensive research. The authors show that inputs account for a much higher share than previously thought – between 55% and 70%, as opposed to 30% before. An expanded measure of human capital that incorporates education quality and work experience drives much of this result.
Πηγή: VoxEU