In contrast to (3), Equation (6) implies equality of population density at industrialization, with differences in technology absorption, [[epsilon].
This paper shows that once China's lower population density is accounted for, there is no longer a puzzle; the standard growth models correctly predict the earlier industrialization of England.
Industrialization determined by initial increase in GDP per capita taken from Table 5.
The overlapping generations specification of Hansen and Prescott (2002) is chosen to prevent capital accumulation prior to industrialization.
Parente and Prescott (2000, 2004) explain China's late industrialization by institutional failure to adopt available technology.