Coecient on reforms is positive and highly signicant

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Unformatted text preview: Coefficient on reforms is positive and highly significant. Panel B shows there is a strong first-stage relationship between the treatment variable (here years of French presence) and the reform index. In the second stage reforms have a positive and significant effect on urbanization coefficient is 0.658. The reforms table shows that a well reforming country had an index of about 60 by 1900, which implies that it had 0.658 × 60 = 39.4% points more urbanization. Similar to the cross-country numbers. Final two columns show similar results with the overid strategy. The Consequences of Radical Reform: The French Revolution Daron Acemoglu, Davide Cantoni, Simon Johnson, James Robinson Introduction Historical background Cross-country evidence Within-Germany Evidence Reforms in Germany Conclusion Conclusions Evidence that places which were exogenously reformed by the French during the Napoleonic period did relatively better subsequently. Consistent with the view that the institutions of the ancien r´gime (guilds, feudal legacy in countryside, e absence of equality before the law) impeded growth. Not consistent with the view that civil code detrimental economically (though comparison is not to Common Law). Not consistent with the view that institutions have to be appropriate or evolve organically. Why did it work when reforms often fail? Most likely because there was simultaneous reform in many dimensions and local elites did not have sufficient power to undermine them. The Consequences of Radical Reform: The French Revolution Daron Acemoglu, Davide Cantoni, Simon Johnson, James Robinson Introduction Historical background Cross-country evidence Within-Germany Evidence Reforms in Germany Conclusion...
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This document was uploaded on 02/28/2014 for the course ECON 2328 at Harvard.

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