Accounting for the Cross--country Differences in Income and Physical and Human Capital

Akos Valentinyi () and Berthold Herrendorf

No 786, 2004 Meeting Papers from Society for Economic Dynamics

Abstract: We ask whether the three-sector neoclassical growth model can account for the large cross-country differences in the levels of per-capita income, in the stocks of physical and human capital, and in the relative prices of capital. We use a version in which one sector produces services, a second sector produces manufactured goods including capital goods, and a third sector produces human capital. We allow for cross-country differences in sectoral TFP and in taxes on the sectors' productions. We find that cross-country differences in sectoral TFP can account for the differences in the relative price of capital goods, in the capital-output ratios in international prices, and in the stocks of human capital. In contrast, differences in taxes are of much lesser importance

Keywords: Total Factor Productivity; Development Facts; Relative Price of Capital; Human Capital Accumulation (search for similar items in EconPapers)
JEL-codes: E00 (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed004:786

Access Statistics for this paper

More papers in 2004 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().