Productivity Differences between and within Countries

39 Pages Posted: 21 Jul 2009 Last revised: 29 Nov 2024

See all articles by Daron Acemoglu

Daron Acemoglu

Massachusetts Institute of Technology (MIT) - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Melissa Dell

Massachusetts Institute of Technology (MIT) - Department of Economics

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Date Written: July 2009

Abstract

We document substantial within-country (cross-municipality) differences in incomes for a large number of countries in the Americas. A significant fraction of the within-country differences cannot be explained by observed human capital. We conjecture that the sources of within-country and between-country differences are related. As a first step towards a united framework, we propose a simple model incorporating both differences in technological know-how across countries and differences in productive efficiency within countries.

Suggested Citation

Acemoglu, Daron and Dell, Melissa, Productivity Differences between and within Countries (July 2009). NBER Working Paper No. w15155, Available at SSRN: https://ssrn.com/abstract=1434671

Daron Acemoglu (Contact Author)

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Melissa Dell

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

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