Finn E. Kydland and Edward C. Prescott (1991), 'Hours and Employment Variation in Business Cycle Theory', Economic Theory, 1 (1), January, 63-81 -- David K. Backus, Patrick J. Kehoe and Finn E. Kydland (1992), 'International Real Business Cycles', Journal of Political Economy, 100 (4), August,...

Why isn't the whole world as rich as the United States? Conventional views holds that differences in the share of output invested by countries account for this disparity. Not so, say Stephen Parente and Edward Prescott. In Barriers to Riches, Parente and Prescott argue that differences in Total...