The next step, presented in column (3) of Table 1, is to estimate a specification where both the level of technology and the capital–output ratio are allowed to vary across countries. For this purpose, I simply match the two previous specifications. The results should certainly not be overemphasized and call for a number of robustness tests. But, so far, my point estimates suggest that international differences in the two capital–output ratios are not important for explaining international differences in output per person once a measure of international technology differences is taken into account. In addition, the estimated coefficient on the measure of institutional quality hardly changes as compared with column (2). In my view, this empirical result is perfectly in line with a cross-country application of the Solow model, but it appears to be in conflict with the MRW cross-country translation of the Solow model.