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Second thoughts on development accounting

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  • Gundlach, Erich
  • Rudman, Desmond
  • Wößmann, Ludger

Abstract

We estimate the relative roles of factor inputs and productivity in explaining the level of economic development, which is measured as output per worker. For a large sample of countries, we show that alternative identifying productivity assumptions and alternative measures of human capital have a large impact on the relative weights of factor inputs and productivity in a decomposition of output per worker. For a sample of OECD countries, we find that productivity has almost no role in explaining cross-country differences in output per worker. This result supports the reasoning of a traditional neoclassical growth model.

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 895.

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Date of creation: 1998
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Handle: RePEc:kie:kieliw:895

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  1. Douglas Gollin, 2002. "Getting Income Shares Right," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 458-474, April.
  2. Edward C. Prescott, 1997. "Needed: a theory of total factor productivity," Staff Report 242, Federal Reserve Bank of Minneapolis.
  3. Eric A. Hanushek & Dongwook Kim, 1995. "Schooling, Labor Force Quality, and Economic Growth," NBER Working Papers 5399, National Bureau of Economic Research, Inc.
  4. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  5. Nelson, Richard R, 1973. "Recent Exercises in Growth Accounting: New Understanding or Dead End?," American Economic Review, American Economic Association, vol. 63(3), pages 462-68, June.
  6. Maddison, Angus, 1987. "Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 649-98, June.
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Cited by:
  1. Marcelo Soto, 2006. "The Causal Effect of Education on Aggregate Income," Working Papers 0605, International Economics Institute, University of Valencia.
  2. Audrey Siew Kim Lim & Kam Ki Tang, 2006. "Education Inequality, Human Capital Inequality And The Kuznets Curve," CAMA Working Papers 2006-08, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  3. Martin Paldam & Erich Gundlach, 2007. "Two Views on Institutions and Development: The Grand Transition vs. the Primacy of Institutions," Kiel Working Papers 1315, Kiel Institute for the World Economy.
  4. Siebert, Horst, 1999. "How can Europe solve its unemployment problem?," Kiel Discussion Papers 342, Kiel Institute for the World Economy (IfW).
  5. Eric A. Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 607-68, September.
  6. Vincenzo Scoppa, 2007. "Quality of Human and Physical Capital and Technological Gaps across Italian Regions," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 585-599.
  7. Kai Carstensen & Erich Gundlach & Susanne Hartmann, 2009. "The Augmented Solow Model with Mincerian Schooling and Externalities," German Economic Review, Verein für Socialpolitik, vol. 10, pages 448-463, November.
  8. Erich Gundlach, 2003. "Growth Effects of EU Membership: The Case of East Germany," Empirica, Springer, vol. 30(3), pages 237-270, September.
  9. Erich Gundlach & Ximena Matus-Velasco, 2000. "Climatic Conditions, Cultural Diversity, and Labor Productivity," Kiel Working Papers 1015, Kiel Institute for the World Economy.
  10. Hanushek, Eric A. & Woessmann, Ludger, 2012. "Schooling, educational achievement, and the Latin American growth puzzle," Journal of Development Economics, Elsevier, vol. 99(2), pages 497-512.
  11. Gundlach, Erich, 1999. "Investment in education: some lessons from the international evidence for the Baltic states," Kiel Discussion Papers 333, Kiel Institute for the World Economy (IfW).
  12. Gundlach, Erich, 2003. "Die Bedeutung des Humankapitals für das Wirtschaftswachstum," Open Access Publications from Kiel Institute for the World Economy 3029, Kiel Institute for the World Economy (IfW).
  13. Gundlach, Erich & Wößmann, Ludger, 2004. "Bildungsressourcen, Bildungsinstitutionen und Bildungsqualität: Makroökonomische Relevanz und mikroökonomische Evidenz," Open Access Publications from Kiel Institute for the World Economy 3311, Kiel Institute for the World Economy (IfW).
  14. Gundlach, Erich, 1999. "Die Produktivität der Bildung," Open Access Publications from Kiel Institute for the World Economy 2320, Kiel Institute for the World Economy (IfW).

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