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...

Some recent empirical studies deny any direct performance effects of measures of geography and conclude that institutions trump all other potential determinants of development. For given effects of institutional quality, our empirical results indicate quantitatively important direct negative...