Productivity Differences Between and Within Countries

Daron Acemoglu, Melissa Dell

NBER Working Paper No. 15155
Issued in July 2009
NBER Program(s):International Finance and Macroeconomics Program, Economic Fluctuations and Growth Program, Political Economy Program

We document substantial within-country (cross-municipality) differences in incomes for a large number of countries in the Americas. A significant fraction of the within-country differences cannot be explained by observed human capital. We conjecture that the sources of within-country and between-country differences are related. As a first step towards a united framework, we propose a simple model incorporating both differences in technological know-how across countries and differences in productive efficiency within countries.

Acknowledgments

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Document Object Identifier (DOI): 10.3386/w15155

Published: Daron Acemoglu & Melissa Dell, 2010. "Productivity Differences between and within Countries," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 169-88, January. citation courtesy of

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