The Great Diversification and its Undoing
---- Acknowledgements -----
We thank Alex Chinco and Farzad Saidi for excellent research assistance. For helpful conversations, we thank Susanto Basu, V.V. Chari, Robert Engle, Dale Jorgenson, Alessio Moro, Robert Lucas, Scott Schuh, Silvana Tenreyro, and seminar participants at CREI, ESSIM, Minnesota, NBER, Paris School of Economics, Richmond Fed, Sciences-Po, SED and Yale. We also thank Mun Ho for help with the Jorgenson data. Carvalho acknowledges financial support from the Government of Catalonia (grant 2009SGR1157), the Spanish Ministry of Education and Science (grants Juan de la Cierva, JCI2009-04127, ECO2008-01665 and CSD2006-00016) and the Barcelona GSE Research Network. Gabaix acknowledges support from the NSF (grants DMS-0938185 and SES-0820517). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.