Armenter, Roc; Lahiri, Amartya - Federal Reserve Bank of New York - 2006
per capita income. Using cross-country data on the prices of investment goods, we find that the model does fairly well in … quantitatively accounting for the observed dispersion in world income. For our baseline parameterization, the model generates thirty …-five-fold income gaps and six-fold productivity differences between the richest and poorest countries in our sample. …