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endowments and productivity, relative factor costs emerge as a source of real-income variation across countries. These are shaped … back out the relative factor costs of 40 major economies in a theory-consistent manner. This reduces the variation in … "residual" productivity required to explain the observed per-capita income differences by more than one half. …
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In this paper we employ techniques developed in spatial econometrics to analyse spatial patterns of technology diffusion, to detect clusters and to estimate theoretical models that incorporate space explicitly. These techniques correct for misspecifications resulting from the omission of spatial...
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