Heed the Weakest Link : A Model of Interdependent Institutions
Table 3 . Marginal benefits of improving specific institutions
Ease of entry ( wrt entry costs ) |
Absence of corruption |
Efficiency of credit markets |
Efficiency of labor market |
Business performance |
x 1
x 2
x 3
x 4
HI |
HI |
HI |
LO |
difficult |
0.9 |
0.9 |
0.9 |
0.1 |
0.0729 |
Marginal effects : 0.081 |
0.081 |
0.081 |
0.729 |
|
Figure 1 . The world income distribution : kernel density based on our elaboration on IMF data for the year 2009 ( Epanechnikov kernel , bandwidths shown ).
4 . The Empirical Distribution of GDP Per Capita
Is the lognormal distribution a good
approximation for the distribution of world GDP per capita ? Lee ,
57
Amaral , Canning , Meyer , and Stanley ( 1998 ) provide some tentative evidence in favor of a lognormal . In Figure 1 , we see a kernel density of the distribution of ( log of ) GDP per capita , based on IMF data for 181 countries in 2009 . 3