Economic History and Economic Thought(TBU)
Published:
Understanding Economics from a historical perspective (especialy Cliometrics).
Cliometrics is the application of economic theory and quantitative methods to the study of economic history.
Douglass C. North and Robert W. Fogel
Three major important questions in economics:
- Why are some regions poor while others are rich?
- Why didn’t development occur before: the Malthusian trap
- Why is development sustained now: the origin of modern growth
1.Why is Africa Poor?
Nunn(QJE, 2008):
Africa’s current underdevelopment can be explained by its slave trades.
Nunn&Wantchekon(AER, 2011):
Individuals whose ancestors were heavily raided during the slave trade are less trusting today.
Most of the impact of the slave trade is through factors that are internal to the individual, such as cultural norms, beliefs, and values.
Nunn&Puga(RES, 2012):
Rugged terrain hinders trade and most productive activities.
Rugged terrain within Africa afforded protection to those being raided during the slave trades.
2.Escape from the Malthusian trap
Chatterjee&Vogl(AER, 2018):
Fertility was procyclical but declined and delayed with long-run growth; fluctuations late (but not early) in the reproductive period affected lifetime fertility.
3.The mystery of the origins of modern growth
Needham Puzzle: Why didn’t China have a scientific revolution considering its early scientific accomplishments?
Great Divergence(Pomeranz):
- Why did the Industrial Revolution occur in Europe?
- Why did the Industrial Revolution not occur in China?
- Why did the Industrial Revolution occur in the 18th century?
- Why didn’t China achieve a breakthrough around the same time as Europe?
- Big question (“Great Divergence”): Why was Europe first in achieving modern economic growth?
- Small question (“Little Divergence”): Why, within Europe, was Britain first?
Three popular answers to “Why Britain?”
- Acemoglu and Robinson: Good institutions, in particular after the Glorious Revolution of 1688.
- Joel Mokyr: Scientific/technological innovations created by a “culture of growth”.
- Robert Allen: High wages created by international trade and urbanization induced technological innovation.
Spread to Europe: The French Revolution
Acemoglu etc.(AER, 2012):