| This dissertation utilizes cross-country national data to examine whether four factors may be missing from the basic Solow model. These factors are human capital, the government's share of consumption, the level of government integrity, and climate. A new data set for human capital is developed that is based on historic rates of investment in education and experience on the job. The empirical results indicate that human capital has a substantial, positive effect on national income/adult. The estimated effect of education on national income is consistent with the effect on personal income estimated in micro studies. The government's share of national consumption has a substantial, negative effect on national income. Government integrity has a positive effect on national income. The average annual daily low temperature has a negative effect on income, but this effect is not statistically significant at the five percent level. |
