We ask for which part of the observed cross-country differences in the level of per-capita income monopoly rights can account. We answer this question in a calibrated growth model with capital. Monopoly rights in the capital-producing sector shield labor market insiders from the competition by...

Among the rich economies of the world today, per capita output levels had typically diverged before converging to the per capita output level of the frontier economy. Since frontier economies have grown at stable rates, non-frontier economies display an S-shape aggregate transition path. Along...

Countries differ markedly with respect to income per capita. These differences cannot be accounted for by differences in factors of production, which means that measured TFP varies significantly across countries. Countries that have a poorly developed financial intermediation sector tend to be...

The U.S. national saving rate has been declining since the 1960s while the share of consumption in output has been increasing. We explore if a standard growth model can explain the secular movements observed in this time period. Our quantitative findings indicate that the standard neoclassical...

In this paper, I examine the implications of collateral constraints in a production economy and demonstrate that collateral constraints may have a role to play in resolving two outstanding puzzles: the risk-free rate puzzle and the total factor productivity puzzle. The first puzzle, as noted by...

Detailed macroeconomic data to accompany the article in the Review of Economic Dynamics