We show the relevance of government expenditure inefficiency using the Barro (1990) model. We estimate government inefficiency for 52 developing countries using a data envelopment analysis. The estimated inefficiencies are subsequently used in a general to specific approach in order to identify...

Should agriculture or non-agriculture be a priority for development? We revisit this longstanding and intractable question using a two-sector, three-factor dynamic model with an asymptotic balanced growth path. The model allows a forward-looking assessment of development priorities based on...

This paper explores the role of "social capability" in growth and development. We present a wide variety of evidence to show that rates of growth, in per capita income and TFP, are strongly related to the extent of a country's initial social development. We also show that differences in social...