"This essay develops a theory of the evolution of international income levels. In particular, it augments the Hansen-Prescott theory of economic development with the Parente-Prescott theory of relative efficiencies and shows that the unified theory accounts for the evolution of international...

Barriers to Riches -- Contents -- Tables -- Figures -- Preface -- Acknowledgments -- Introduction -- International Income -- Facts -- Growth Theory with -- No TFP Differences -- Growth Theory with a -- Human Capital Sector -- Growth Theory with -- TFP Differences -- Constraints on Firm --...

This essay develops a theory of the evolution of international income levels. In particular, it augments the Hansen-Prescott theory of economic development with the Parente-Prescott theory of relative efficiencies and shows that the unified theory accounts for the evolution of international...