Why isn't the whole world as rich as the United States? Conventional                  views holds that differences in the share of output invested by countries account                  for this disparity. Not so, say Stephen Parente and Edward Prescott. In Barriers to                  Riches, Parente and Prescott argue that differences in Total Factor Productivity                  (TFP) explain this phenomenon. These differences exist because some countries erect                  barriers to the efficient use of readily available technology. The purpose of these                  barriers is to protect industry insiders with vested interests in current production                  processes from outside competition. Were this protection stopped, rapid TFP growth                  would follow in the poor countries, and the whole world would soon be rich.Barriers                  to Riches reflects a decade of research by the authors on this question. Like other                  books on the subject, it makes use of historical examples and industry studies to                  illuminate potential explanations for income differences. Unlike these other books,                  however, it uses aggregate data and general equilibrium models to evaluate the                  plausibility of alternative explanations. The result of this approach is the most                  complete and coherent treatment of the subject to date.

Barriers to Riches (Walras-Pareto Lectures) PDF

The list of books you might like