Journal
AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
Volume 2, Issue 1, Pages 169-188Publisher
AMER ECONOMIC ASSOC
DOI: 10.1257/mac.2.1.169
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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 he 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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