Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/84274
Authors: 
Rodriguez, Alejandro M.
Year of Publication: 
2004
Series/Report no.: 
Serie Documentos de Trabajo, Universidad del CEMA: Área: economía 270
Abstract: 
It is a well known fact that not all countries develop at the same time. The industrial revolution began over 200 years ago in England and has been spreading over the world ever since. In their paper Barriers to Riches, Parente and Prescott notice that countries that enter the industrial stage later on grow faster than what the early starters did. I present a simple model with learning externalities that generates this kind of behavior. I follow Lucas (1998) and solve the optimization problem of the representative agent under the assumption that the external effect is given by the world leader's human capital.
Document Type: 
Working Paper

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