This article presents a group of exercises of level and growth decomposition of output per worker using cross-country data from 1960 to 2000. Its shown that at least until 1975 factors of production ( capital and education) were the main cause of output dispersion and that productivity variance...

We model an environment in which different vintages of capital with their different productivities coexist. A reduction in the cost of investment induces investment in new capital which raises both measured capital and measured productivity simultaneously. We calibrate this model to...

We propose a theory where capital market imperfections are at the origin of cross-country TFP differences. In our theory entrepreneurs have private information about the multifactor productivity of their technology. We study how the contracting environment, as described by the ability to enforce...

This paper studies studies the effects of alternative taxation rules when salient demographic features of modern economies are explicitly considered. We build a equilibrium framework in which the formation and dissolution of households, household labor supply decisions at the intensive and...

This paper analyzes the optimal use of fiscal policy and sovereign debt repayment as signals in an asymmetric information environment. It shows that the presence of government private information could turn an optimal full-information countercyclical fiscal policy into a pro-cyclical one that...

This paper studies the effects of a flat-tax reform in a dynamic, general equilibrium model with heterogeneous agents and occupational choice. Each agent has a choice to be a worker or to establish a firm and become an entrepreneur with a limited ability to borrow in financial markets. Because...