We prove that in a closed economy without distortionary taxation, the welfare of a representativeconsumer is summarized to a …rst order by the current and expected future values of the Solowproductivity residual in level and by the initial endowment of capital. The equivalence holds if...

In the literature technical change is mostly assumed to be exogenous and specified as afunction of time. However, some exogenous external factors other than time can also affecttechnical change. In this paper we model technical change via time trend (purely externalnon-economic) as well as other...

We prove that the change in welfare of a representative consumer is summarized by thecurrent and expected future values of the standard Solow productivity residual. Theequivalence holds if the representative household maximizes utility while taking pricesparametrically. This result justifies TFP...

For more than fifty years, the Solow decomposition (Solow 1957) has served as the standard measurement of total factor productivity (TFP) growth in economics and management, yet little is known about its precision, especially when the capital stock is poorly measured. Using synthetic data...

We use panel data on Mexican manufacturing plants to study the connection between plants´responses to changes in the economic environment and their contributions to aggregateproductivity growth in the period following the implementation of the North American TradeAgreement (NAFTA)...

The paper reviews the macroeconomic data describing the British economy from 1760 to1913 and shows that it passed through a two stage evolution of inequality. In the first half ofthe nineteenth century, the real wage stagnated while output per worker expanded. The profitrate doubled and the...

The paper reviews the macroeconomic data describing the British economy during theindustrial revolution and shows that they contain a story of dramatically increasing inequalitybetween 1800 and 1840: GDP per worker rose 37%, real wages stagnated, and the profit ratedoubled. They share of profits...

This note investigates the effects of the education level, product market rigidities andemployment protection legislation on growth. It exploits macro-panel data for OECDcountries...

In labor markets with worker and firm heterogeneity, the matching between firms and workersmay be assortative, meaning that the most productive workers and firms team up. Weinvestigate this with longitudinal population-wide matched employer-employee data fromPortugal...

Although empirical evidence available suggests that information and communication technologies (ICT) have positively contributed to important sectors of the Mexican economy, it is still unknown to which extent ICT have truly contributed to productivity among these sectors. The increasing...