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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:

BILS, M. AND P. J. KLENOW (2000):"Does Schooling Cause Growth?," American Economic Review, 90(5), 1160-1183.

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.

  • 3
    Well, not everyone is in the mood for opening that page and look for equation number four, could you add it to your question?2012-07-06

2 Answers 2