Hsieh, Chang-Tai; Klenow, Peter J. - In: American Economic Journal: Macroeconomics 2 (2010) 1, pp. 207-23
Researchers have made much progress in the past 25 years in accounting for the proximate determinants of income levels: physical capital, human capital, and Total Factor Productivity (TFP). But we still know little about why these factors vary. We argue that TFP exerts a powerful influence on...