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Thursday, July 23, 2020 | History

4 edition of Building blocks for barriers to riches found in the catalog.

Building blocks for barriers to riches

Narayana Rao Kocherlakota

Building blocks for barriers to riches

by Narayana Rao Kocherlakota

  • 385 Want to read
  • 10 Currently reading

Published by Federal Reserve Bank of Minneapolis in [Minneapolis, Minn.] .
Written in English

    Subjects:
  • Industrial productivity -- Econometric models.

  • About the Edition

    Total factor productivity (TFP) differs greatly across countries.In this paper, I provide a novel rationalization for these differences.I consider two environments, one in which enforcement is full and the other in which enforcement is limited.In both settings, manufactured goods can be produced using a high-TFP technology or a low-TFP technology; there is a fixed cost associated with adoption of the former.I suppose that the fixed cost is sufficiently small that adoption takes place in a symmetric Pareto optimum in the limited-enforcement setting.Under this condition, I prove two results.First, adoption takes place in all Pareto optima in the full-enforcement setting.Second, adoption may not take place in a Pareto optimum in the limited-enforcement setting, if the division of social surplus is sufficiently unequal.I conclude that limited enforcement and high inequality interact to create particularly strong barriers to riches - in the language of Parente and Prescott (1999, 2000)--Federal Reserve Bank of Minneapolis web site.

    Edition Notes

    StatementNarayana R. Kocherlakota.
    SeriesFederal Reserve Bank of Minneapolis, Research Department staff report ;, 288, Staff report (Federal Reserve Bank of Minneapolis. Research Dept. : Online) ;, 288.
    Classifications
    LC ClassificationsHB1
    The Physical Object
    FormatElectronic resource
    ID Numbers
    Open LibraryOL3476459M
    LC Control Number2005615978

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Downloadable. Total factor productivity (TFP) differs greatly across countries. In this paper, I provide a novel rationalization for these differences.

I consider two environments, one in which enforcement is full and the other in which enforcement is limited. In both settings, manufactured goods can be produced using a high-TFP technology or a low-TFP technology; there is a fixed cost. Downloadable. Total factor productivity (TFP) differs greatly across countries.

In this paper, I provide a novel rationalization for these differences. I consider two environments, one in which enforcement is full and the other in which enforcement is limited. In both settings, manufactured goods can be produced using a high-TFP technology or a low-TFP technology; there is a fixed cost Cited by: Second, adoption may not take place in a Pareto optimum in the limited-enforcement setting, if the division of social surplus is sufficiently unequal.

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