"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...

A market-size-only theory of industrialization cannot explain why England developed nearly two centuries before China. One shortcoming of such a theory is its exclusive focus on producers. We show that once we incorporate the incentives of factor suppliers' organizations such as craft guilds,...

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 --...