Date of Completion
2022
Document Type
Honors College Thesis
Department
Business
Thesis Type
Honors College
First Advisor
Michael J. Tomas III
Keywords
Economics, Marginal Product of Capital, Lucas Paradox, Capital Flow
Abstract
Since his original publication in 1990, Robert E Lucas Jr’s observation of capital failing to flow between rich and poor countries has stoked debate across international development economics over its theoretical explanation. Since then, economists have sought to rationalize this observation through two explanations: fundamental production structure differences and capital market imperfections. This paper serves to build upon the marginal product of capital (MPK) compositions presented by Caselli and Feyrer (2007) to provide updated and refined data on national accounts. In reassessing cross-country MPK’s, near equalized differentials between rich and poor countries are observed.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Recommended Citation
Tidswell, Oliver George, "Cross-Country Differences in Marginal Product of Capital and the Efficient Allocation of the World’s Capital Stock" (2022). UVM Honors College Senior Theses. 503.
https://scholarworks.uvm.edu/hcoltheses/503