Over the last couple of decades, it has become a commonplace to claim that institutions matterʺ for economic development. Yet, institutions are not exogenous but the result of hu-man action. It is argued here that the values and norms held by substantial parts of society’s members are an...

Economic globalization has led to production increasingly becoming concentrated in certain regions and countries. This article develops an accounting framework to provide the trends for the contribution of countries to global gross domestic production (GDP). In particular, the method transforms...

We consider a tractable model of heterogeneous production units that features endogenous entry and productivity investment to assess the quantitative impact of policy distortions on aggregate output and establishment size. Relative to the standard factor misallocation framework, policy...

Llull presents a cross-country analysis of the impact of immigration on productivity and employment. Push-distance interactions provide relevant and exogenous variation for identification. Results suggest that a 1 percentage point increase in the share of immigrants in the population reduces GDP...