Barriers to Entry and Development
Arizona State University (ASU) - Economics Department; Centre for Economic Policy Research (CEPR)
Ibmec, Rio de Janeiro - Department of Economics
International Economic Review, Vol. 52, No. 2, pp. 573-602, 2011
We ask whether barriers to entry are a quantitatively important reason for the income gap between developing countries and the United States. We develop a tractable general equilibrium model that captures the effects of barriers to entry and the other main distortions typically considered in the development literature. We carry our model to the data and ask it to match the main development facts from the Penn World Table. We find that this requires large barriers to entry in developing countries, which account for about half of the income gap with the United States.
Number of Pages in PDF File: 30Accepted Paper Series
Date posted: April 27, 2011
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo3 in 0.656 seconds