Parente, Stephen L.; Prescott, Edward C.

Barriers to Riches

List of Tables xi List of Figures xiii Preface xv Acknowledgments xix Introduction 1(10) International Income Facts 11(24) Evolution of Income Levels and Differences 13(10) Summary of Facts 23(1) Some Questions and Features of Candidate Theory 24(1) Appendix: Large Rapid Development Experiences 25(10) Growth Theory with No TFP Differences 35(22) The Standard Model 36(7) The Two-Sector Extension 43(1) The Intangible Capital Extension 44(13) Growth Theory with a Human Capital Sector 57(10) Human Capital Sector Model Extension 58(4) Direct Evidence of Human Capital's Role 62(5) Growth Theory with TFP Differences 67(14) The Model 71(4) Model Calibration 75(2) Findings 77(2) Steady-State Output and TFP Differences 79(2) Constraints on Firm Technologies and TFP 81(10) The Plant Technology and the Barrier 82(4) From the Plant Technology to the Aggregate Production Function 86(2) The Mapping from Barriers to TFP 88(3) Evidence of Barriers to Efficiency 91(12) The Textile Industry 92(5) Subsurface Mining in the United States 97(3) Relative Industry Productivities across Countries 100(3) Monopoly Rights: A Theory of TFP Differences 103(30) The Economy 105(2) The Monopoly Rights Arrangement 107(14) The Free Enterprise Arrangement 121(1) Quantitative Findings 122(5) Compensatory Schemes 127(6) Conclusion 133(14) Why England before Continental Europe 134(1) Why Not Earlier in China 135(3) Why the United States and Switzerland Did So Well 138(2) Why Japan Experienced Its Development Miracle 140(1) Development Policy: Competition, Free Trade, and Privatization 141(3) Final Comment 144(3) Notes 147(4) References 151(6) Index 157