I hope some of you read Economics. I was wondering if anyone can help me in deriving equation (4):
$\ln A_{i}\left( t\right) =\beta\ln h_{i}\left( t\right) +\ln\bar{A}\left( t\right) +\xi_{i}\left( t\right)$,
in the following article:
Notation:
$\bar{A}:$ the exogenously growing “world technology frontier”,
$h_{i}(t):$ the average level of human capital in country $i$,
$\beta:$ discount rate,
$A_{i}:$ technology level in country $i$ at time $t$ and
$\xi_{i}:$ some kind of error (not sure)
Thanks
update: I've updated the link - it's from P. Klenow's website.