ABSTRACT
In this chapter, the author deals with the Robert Barro which is a report on aspects of a larger effort by Barro and his colleagues that he believe has been extraordinarily fruitful. He aims to develop further the implications of the investment in human capital in terms of the long-run level of per capita income that Barro calls yi or target income. In the money demand literature, much work has been devoted to details of the dynamics that may be impossible to infer from the data Barro presents. The author argues that Barro will consider whether he really believes that the rate of adjustment is the same for different causes of deviations between target and actual income and, if not, how he would model that. Barro’s work also provides evidence that the differences in how societies are ordered and regulated really do make a big difference, as argued by Jack Carr and Adam Smith.
