LectureEconomicGrowth.pptVIP

Possible fundamental answers to these questions: Geography: Jared Diamond (1997), Ken Pomeranz (2000). Genetic/social improvement: Gregory Clark (2007). Culture: Landes (1999). Relative prices: Bob Allen’s work (in press). Institutions: North and Weingast (1989), AJR Atlantic Traders, La Porta et al. Legal Origins. Interaction of resources, institutions, and technology: Engerman and Sokoloff (1997, 2005), AJR Reversal of Fortune, AJR Colonial Origins. * ?? Montesquieu: – “The heat of the climate can be so excessive that the body there will be absolutely without strength. So, prostration will pass even to the spirit; no curiosity, no noble enterprise, no generous sentiment; inclinations will all be passive there; laziness there will be happiness,” – People are ... more vigorous in cold climates. The inhabitants of warm countries are, like old men, timorous; the people in cold countries are, like young men, brave. ?? Moreover, Montesquieu argues that lazy people tend to be governed by despots, while vigorous people could be governed in democracies; thus hot climates are conducive to authoritarianism and despotism. * * * * * * * Check out the second paragraph on p.220: It gives a nice contrast of the Solow model and Marxist predictions for the behavior of factor prices, comparing both predictions with the data. * * Decomposing Growth Rates Taking logs of production function: The same applies to log differences: Log differences are approximately equal to percentage changes: * Growth Decomposition for the U.S. * Growth Decomposition for the Asian Tigers * Growth Accounting for China Human Capital in China * Human Capital in China * Innovation New Goods Patents Technology in China * * Management and Productivity Patents 1996-2004 Management Score Note: European firms only as uses the European Patent Office database * Policies to promote growth Saving Rate Human capital investment Encouraging technological progress Right Institutions * Growth