Based on an asset pricing model, this paper shows that traditional growth accounting exercises attribute too much weight to capital deepening and suggests a method to filter out TFP-induced capital deepening from the estimates. Using data for 16 industrialised countries, it is shown that labour...

Microeconomic studies have found cash flow to be important for the investment decision and this result is often interpreted as evidence of adverse selection in credit markets. Using direct survey evidence on banks’ willingness to lend, this research examines the role of credit in the...

This paper empirically investigates whether the contribution of human capital to productivity growth depends on the composition of human capital and proximity to the technology frontier in a panel of 87 sample countries over the period 1970-2004. It tests the hypothesis that primary and...