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American Economic Journal: Macroeconomics: Vol. 2 No. 1 (January 2010)

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Productivity Differences between and within Countries

Article Citation

Acemoglu, Daron, and Melissa Dell. 2010. "Productivity Differences between and within Countries." American Economic Journal: Macroeconomics, 2(1): 169-88.

DOI: 10.1257/mac.2.1.169

Abstract

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 toward a unified framework, we propose a simple model incorporating differences in technological know-how across countries and differences in productive efficiency within countries. (JEL E23, I31, J31, O15, O18, O47, R23)

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Authors

Acemoglu, Daron (MIT)
Dell, Melissa (MIT)

JEL Classifications

E23: Macroeconomics: Production
I31: General Welfare
J31: Wage Level and Structure; Wage Differentials
O15: Economic Development: Human Resources; Human Development; Income Distribution; Migration
O18: Economic Development: Regional, Urban, and Rural Analyses; Transportation
O47: Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
R23: Urban, Rural, and Regional Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics

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