TY - JOUR
T1 - Barriers to entry and development
AU - Herrendorf, Berthold
AU - Teixeira, Arilton
PY - 2011/5
Y1 - 2011/5
N2 - We ask whether barriers to entry are a quantitatively important reason for the income gap between developing countries and the United States. We develop a tractable general equilibrium model that captures the effects of barriers to entry and the other main distortions typically considered in the development literature. We carry our model to the data and ask it to match the main development facts from the Penn World Table. We find that this requires large barriers to entry in developing countries, which account for about half of the income gap with the United States.
AB - We ask whether barriers to entry are a quantitatively important reason for the income gap between developing countries and the United States. We develop a tractable general equilibrium model that captures the effects of barriers to entry and the other main distortions typically considered in the development literature. We carry our model to the data and ask it to match the main development facts from the Penn World Table. We find that this requires large barriers to entry in developing countries, which account for about half of the income gap with the United States.
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U2 - 10.1111/j.1468-2354.2011.00639.x
DO - 10.1111/j.1468-2354.2011.00639.x
M3 - Article
AN - SCOPUS:79955425334
SN - 0020-6598
VL - 52
SP - 573
EP - 602
JO - International Economic Review
JF - International Economic Review
IS - 2
ER -