Erosa, Andrés; Koreshkova, Tatyana; Restuccia, Diego - Instituto de Ciencias Sociales, Instituto Madrileño de … - 2009
We develop a quantitative theory of human capital investments in order to evaluate the magnitude of cross-country differences in total factor productivity (TFP) that explains the variation in per-capita incomes across countries. We build a heterogeneous-agent economy with cross-sectional...