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explains how intermediate goods and weak links can amplify the effect of misalloca-tion, potentially leading to large income differences. Clearly, both steps are needed to understand development. I. Linkages and Complementarity We begin by discussing briefly the key mechanisms at work in this paper. These mechanisms are conceptually distinct.
What explains these enormous differences? This paper returns to two old ideas in development economics and proposes that complementarity and linkages are at the heart of the explanation. First, just as a chain is only as strong as its weakest link, problems at any point in.
Intermediate Goods and Weak Links in the Theory of Economic Development by Charles I. Jones. Published in volume 3, issue 2, pages 1-28 of American Economic Journal: Macroeconomics, April 2011, Abstract: What explains the enormous differences in incomes across countries?
1 lut 2007 · This paper builds a model with complementary inputs and links across sectors and shows that it can easily generate 50-fold aggregate income differences from plausible distributions of productivity in the underlying sectors.
This paper builds a model with links across sectors, complementary inputs, and highly substitutable consumption, and shows that it can easily generate 50-fold aggregate income differences.
1 lut 2007 · This paper builds a model with complementary inputs and links across sectors and shows that it can easily generate 50-fold aggregate income differences from plausible distributions of productivity in the underlying sectors.
18 paź 2019 · Opinion Undercover Economist. Weakest link theory provides strong claim to the economics Nobel. Once you start to think about O-ring problems, you see them everywhere. Tim Harford. Add to myFT....
