Asymmetric Growth and Institutions in an Interdependent World

@article{Acemoglu2017AsymmetricGA,
  title={Asymmetric Growth and Institutions in an Interdependent World},
  author={Daron Acemoglu and James Adolph Robinson and Thierry Verdier},
  journal={Journal of Political Economy},
  year={2017},
  volume={125},
  pages={1245 - 1305}
}
We present a model of technologically interconnected countries that benefit and potentially contribute to advances in the world technology frontier. Greater inequality between successful and unsuccessful entrepreneurs increases entrepreneurial effort and a country’s contribution to that frontier. Under plausible assumptions, the world equilibrium is asymmetric, involving different economic institutions and technology levels for different countries. Some countries become technology leaders and… Expand
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