Factor endowments are usually taken as given in trade theoretical analyses of technological change. We use the Deardorff (1974) diagram to show how the steady state capital labor ratio endogenously adjusts to technology shocks in a two-sector small open economy, an effect which has largely been...

We combine the augmented Solow model with the Mincer equation to derive a specification that identifies an education externality within a production function framework. The previous empirical literature has not reached a consensus about the size of the education externality, which is given by...

Based on Baumol's cost-disease model, we develop two alternative measures of the change in the productivity of schooling. Both productivity measures are based on changes in the relative price of schooling. We find that in most OECD countries the price of schooling has increased faster in 1970-94...

We consider the empirical relevance of two opposing hypotheses on the causality between income and democracy: The Democratic Transition claims that rising incomes cause a transi¬tion to democracy, whereas the Critical Junctures hypothesis denies this causal relation. Our empirical strategy is...

Economists tend to exalt the virtues of free international trade, while politicians are more skeptical. This paper suggests that this is the case because politicians mainly worry about the income distribution effects of trade liberalization, while economists focus on efficiency. Using textbook...

We compare changes in schooling output and in schooling input of six East Asian countries to derive a measure of productivity change. Our results question the impression that all is well with education in East Asia. First, we find that the cognitive achievement of pupils did not change...

Countries with the highest labor productivity overwhelmingly lie in the world's temperate climatic zones far away from the equator. The question we address is whether climatic conditions as measured by distance from the equator remain correlated with labor productivity after other variables are...

Translated to a cross-country context, the Solow model (Solow, 1956) predicts that international differences in steady state output per person are due to international differences in technology for a constant capital output ratio. However, most of the cross-country growth literature that refers...

I reconsider the primacy of institutions over geography as an explanatory factor of cross-country differences in economic performance, which has recently been postulated by Acemoglu et al. (2001) and others. My estimates show that the reported missing direct performance effects of a measure of...

Einfache Lehrbuchmodelle liefern widersprüchliche Aussagen zu den Wirkungen eines arbeitssparenden technischen Fortschritts auf die Löhne. Ein Modell der offenen Volkswirtschaft mit zwei Diversifizierungskegeln zeigt verschiedene Möglichkeiten auf, wie der arbeitssparende technische...