The World Distribution of Productivity: Country TFP Choice in a Nelson-Phelps Economy / Erika Färnstrand Damsgaard, Per Krusell.

By:

Damsgaard, Erika Färnstrand

Contributor(s):

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w16375.Publication details: Cambridge, Mass. National Bureau of Economic Research 2010.Description: 1 online resource: illustrations (black and white)Subject(s):

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: This paper builds a theory of the distribution of TFP across countries. The theory is based on the hypothesis that TFP improvements in a given country follow a Nelson-Phelps specification: they derive from past investments in the country itself and, through a spillover term, from past investments in other countries. Within a stochastic dynamic general equilibrium model of the world, each country invests in TFP and internalizes the dynamic effects of its investments, while ignoring any effects on others. Small symmetric idiosyncratic shocks can lead to large long-run differences in TFP levels and the world TFP distribution may become twin-peaked.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w16375 (Browse shelf(Opens below))	Not For Loan

Total holds: 0

Collection: Colección NBER Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	nber w16372 Is Crowding Out Due Entirely to Fundraising? Evidence from a Panel of Charities /	nber w16373 The Power of Asking: How Communication Affects Selfishness, Empathy, and Altruism /	nber w16374 Unemployment and Productivity in the Long Run: The Role of Macroeconomic Volatility /	nber w16375 The World Distribution of Productivity: Country TFP Choice in a Nelson-Phelps Economy /	nber w16376 On the Economic Consequences of Index-Linked Investing /	nber w16377 Managing Credit Booms and Busts: A Pigouvian Taxation Approach /	nber w16378 Technology Diffusion and Postwar Growth /	Next

September 2010.

This paper builds a theory of the distribution of TFP across countries. The theory is based on the hypothesis that TFP improvements in a given country follow a Nelson-Phelps specification: they derive from past investments in the country itself and, through a spillover term, from past investments in other countries. Within a stochastic dynamic general equilibrium model of the world, each country invests in TFP and internalizes the dynamic effects of its investments, while ignoring any effects on others. Small symmetric idiosyncratic shocks can lead to large long-run differences in TFP levels and the world TFP distribution may become twin-peaked.