Following Mankiw, Romer, and Weil (1992) a growing number of studies find that neoclassical growth models, augmented by human capital, successfully account for the large cross-country income differences found in the data. This paper argues that such models are inconsistent with observations on...

Recent estimates of the effects of tax reforms in the presence of human capital differ greatly. This paper examines which model features and parameter values are critical for the conclusions about the effects of tax changes. I find that the conflicting results of the previous literature are in...