Person:
Caselli, Francesco

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macroeconomics, development economics
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Last updated: January 31, 2023
Biography
Francesco Caselli is the Norman Sosnow Professor of Economics at the London School of Economics.   He earned his undergraduate degree at the University of Bologna in 1992 and a Ph.D. at Harvard University in 1997. Previous appointments include Assistant Professor of Economics at the University of Chicago Graduate School of Business, and Paul Sack Associate Professor of Economics at Harvard University. His research interests include macroeconomics, economic development and political economy, on which he has published extensively in the major professional journals.   He is an elected fellow of the British Academy, the director of the Macroeconomics and Growth Programme at the Centre for Economic Policy Research (CEPR), and an editor of Economica. Previously, he has served as managing editor of the Review of Economic Studies, co-editor of the Journal of Economic Development, member of the governing council of the European Economic Association, member of the LSE growth commission, and director of the macroeconomics programmes at the Centre for Economic Performance (CEP) and the International Growth Centre (IGC).

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  • Publication
    Accounting for Cross-Country Income Differences: Ten Years Later
    (World Bank, Washington, DC, 2016-05) Caselli, Francesco
    The study focused on a cross-section of countries observed in the mid-1990s, so the conclusions from that e¤ort are beginning to be a bit dated. In addition, signi cant revisions of the data underlying the 2005 paper have been published. Last but not least, in the intervening years become aware of ways in which the original methodology can be usefully improved and extended. Hence the present update and upgrade of the original paper. This paper focuses on data (mostly) from 2005 and improves on the original methodology in several dimensions. Development accounting compares di¤erences in income per worker between developing and developed countries to counter-factual di¤erences attributable to observable components of physical and human capital. Such calculations can serve a useful preliminary diagnostic role before engaging in deeper and more detailed explorations of the fundamental determinants of di¤erences in income per worker. The research and policy agenda would then have to focus on technology, allocative e¢ ciency, competition, and other determinants of the efficient use of capital. However because of limitations in thecoverage of the test results, author also present results where human capital is only measured from years of schooling and health. It turns out that, at least in my preferred calibration, the addition or omission of cognitive skills (as measured by test scores) does not greatly affect the quantitative results.