In a model with heterogeneity in managerial talent, we compare the economicand political consequences of reforms aimed at reducing fixed costs of entry (deregulation)and improving the efficiency of financial markets (financial reform). Theeffects of these reforms depend on the market where...

Why are some countries so much richer than others? Development Accounting is a first-passattempt at organizing the answer around two proximate determinants: factors of productionand efficiency. It answers the question “how much of the cross-country income variance canbe attributed to...