Large and sustained differences in marginal products of capital (MPKs) across countries are sharply at odds with the … substantially affected by adjustment costs in the accumulation of capital. With the proper technology and a plausible … parameterization of adjustment costs, the MPK in poor countries is much higher than the MPK in rich countries. Why capital flows do not …

Large and sustained differences in marginal products of capital (MPKs) across countries are sharply at odds with the … substantially affected by adjustment costs in the accumulation of capital. With the proper technology and a plausible … parameterization of adjustment costs, the MPK in poor countries is much higher than the MPK in rich countries. Why capital flows do not …

Capital markets can improve risk sharing and the efficiency with which capital is allocated to the real economy …, boosting economic growth and welfare. However, despite these potential benefits, not all countries have well developed capital … markets. Moreover, government-led initiatives to develop local capital markets have had mixed success. This paper reviews the …

capital deepening is the primary driver of these patterns. Researchers can directly use the new dataset of labor shares to …