Caselli, Francesco; Tenreyro, Silvana - London School of Economics (LSE) - 2005
We revisit Western Europe’s record with labor-productivity convergence, and tentatively extrapolate its implications … higher rates of physical capital accumulation and greater total factor productivity gains. These (relatively) high rates of … capital accumulation and TFP growth reflect convergence along two margins. One margin (between industry) is a massive …