A fab article from Luigi Zingales:
Archive for June 12th, 2012
Today seems to be Chicago day…
The article covers several issues plaguing city of Chicago – population migration to other cities, fiscal mess, poor leadership, corruption etc..
In the end it says:
Fixing Chicago will be a big, difficult project, but it’s necessary. The city’s sparkling core may continue to shine, and magazines may continue to applaud the global city on Lake Michigan—but without a major change in direction, Chicago can expect to see still more people and jobs fleeing for more hospitable locales.
Keeping the appeal of diminishing appeal of the elite club aside, here is a nice paper comparing BRIC economies.
The paper looks at structural changes in the economies and also the productivity differences over the years.
The logic behind such studies is well-known. As economies develop, people move to more productive sectors. This leads to structural changes. Productivity also improves in the lagging sectors as now there are lesser number of people in the sector: