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This paper studies the puzzling lack of correlation between income and schooling in macro regressions. It is argued that the root of the puzzle is threefold. First, there is a problem of a proper definition of the way in which years of schooling should enter into a production function. Second,...
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accommodate technology heterogeneity, variable nonstationarity and the breakdown of the standard crosssection independence … assumption. We focus on technology heterogeneity across sectors and countries and the potential for biased estimates due to … economy made up of agricultural and manufacturing sectors we confirm substantial bias in the technology coefficients and thus …
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national output and factor inputs for the same set of countries. Our results support the idea that the natural rate of growth …
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