different levels of migration frictions. We bring the model to the data for the whole world economy at a 1º times 1º geographic … regions in the world. We then use the model to study the effect of a spatial shock. We focus on the example of a rise in the … of the world economy. …

1950s. Finally, we turn to the determinants of a broad array of development indicators for the year 1960 and for the 1960 …

distributed unequally and institutions do not ensure political commitments. The results imply that for any level of development … resources for which democracy is infeasible in equilibrium irrespective of the level of development. The model also delivers …

of development. We document the following regularities. First, as countries develop, their productive structure moves … from more volatile to less volatile sectors. Second, the level of specialization declines with development at early stages …, and slowly increases at later stages of development. Third, the volatility of country- specific macroeconomic shocks falls …

. However, this starting point cannot easily be taken for granted in many states, neither in history nor in the developing world …

To identify the effect of social capital on financial development, we exploit the well-known differences in social …

colonial rule was to create financial incentives to adopt development policies that encouraged government spending. …

Contrary to the claims of Pomeranz, Parthasarathi and other ‘world historians’, the prosperous parts of Asia between …