Does Investment in Schooling Raise National Income? Evidence from Cross-Country Studies

Development Accounting: Conceptually Flawed and Inconsistent with Empirical Evidence

“…Weil's function, with a value of β < 1-α and implicitly a separate variable for (unschooled) labor [Breton, 2011], the function in equation (10) is mis-specified. The whole point of development accounting was to use the observed private marginal product of schooling to estimate the social marginal product and thereby calculate the residual TFP not explained by either physical capital or human capital.…”