CEMFI and CEPR

THIS SUPPLEMENT provides details on the data used in the paper (Appendix A), on our work with the WIOD (Appendix B), on the development regressions used to produce a stylized development process, (Appendix C), on the estimation details of the demand system (Appendix D.1), on the income elasticities implied by the estimated demand system (Appendix D.2), and on the estimation of some common restricted demand systems (Appendix D.3). In addition, there is a Web Appendix available from the authors’ web page with more details on the model (Appendix E) and on the shooting algorithm used to solve for the transitional dynamics (Appendix F).