Working Paper: NBER ID: w15155
Authors: Daron Acemoglu; Melissa Dell
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 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.
Keywords: productivity; income differences; human capital; local institutions
JEL Codes: O18; O40; R11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| local institutions (D02) | public goods (H41) |
| public goods (H41) | income levels (J31) |
| local institutions (D02) | security of property rights (P14) |
| security of property rights (P14) | income levels (J31) |
| human capital (J24) | income levels (J31) |
| local institutional efficiency (R53) | income disparities (I24) |
| lack of public goods (H41) | lower income levels (I32) |