IS IT HARDER TO SOAR WITH EAGLES WHEN YOU WORK WITH TURKEYS? *

Lucas (1988) modelled the productivity of workers as being a function not only of their own human capital but the human capital of the people with whom they work. Using individual data, this paper investigates whether there are such human-capital externalities. In particular, we look at the research output of academic economists, and ask whether research-output productivity is affected not just by individual human-capital factors, and institutional and funding factors, but additionally by productivity of those in the same academic department. Our findings are also of relevance to the literature on peer-group effects and the 'Bell Curve' debate. Copyright 2006 The AuthorsJournal compilation 2006 Blackwell Publishing Ltd/University of Adelaide and Flinders University .