TY  - JOUR
AU  - Caselli,Francesco
AU  - Ciccone,Antonio
TI  - The Contribution of Schooling in Development Accounting: Results from a Nonparametric Upper Bound
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 17656
PY  - 2011
Y2  - December 2011
UR  - http://www.nber.org/papers/w17656
L1  - http://www.nber.org/papers/w17656.pdf
N1  - Author contact info:
Francesco Caselli
Department of Economics
London School of Economics
Houghton Street
London WC2A 2AE
UNITED KINGDOM
Tel: (44) (0) 2079557498
E-Mail: f.caselli@lse.ac.uk

Antonio Ciccone
Universitat Pompeu Fabra
E-Mail: antonio.ciccone@upf.edu
AB  - How much would output increase if underdeveloped economies were to increase their levels of schooling? We contribute to the development accounting literature by describing a non-parametric upper bound on the increase in output that can be generated by more schooling. The advantage of our approach is that the upper bound is valid for any number of schooling levels with arbitrary patterns of substitution/complementarity. Another advantage is that the upper bound is robust to certain forms of endogenous technology response to changes in schooling. We also quantify the upper bound for all economies with the necessary data, compare our results with the standard development accounting approach, and provide an update on the results using the standard approach for a large sample of countries.
ER  -