Market failures in human capital investment and innovation explain the main features of human development and economic growth. This is shown in a Schumpeterian multi-country model with technology transfer and trade. Thus, only institutions expanding investments in nutrition, education, health,...

We study growth in an economy composed of sectors producing specific goods with advantage under fragmented competition. The government allocates public inputs. Sectorial political power defines government objectives and restrictions, and consists of passive resistance (bounding taxation),...

Using the ENNViH 2002 survey, a switching model shows that significant differences exist in the formation of infant cognitive ability across Mexican social strata. Public policy variables and local economic characteristics are sufficient to detect an important gradient in cognitive abilities and...