Unformatted text preview: s way?
Traditional growth theory had preferences, technology and factor
endowments (maybe the rate of population growth) as exogenous
data which explained paths of factor accumulation.
Early endogenous growth theory paid about as much attention to
these issues, for instance a society is more prosperous if it has more
scientists producing “ideas.”
James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and2, 2009
September Historical Analysis
11 / 19 Fundamental Explanations
Potential fundamental causes of di¤erences in prosperity:
4 Institutions (humanly-devised rules shaping incentives)
Geography (exogenous di¤erences of environment)
Culture (di¤erences in beliefs, attitudes and preferences)
Chance (for instance the impact of the use of Pewter tableware on
world history – decline of Rome, Italian Renaissance, development of
18th century Britain through adoption of porcelain tableware). But fundamental does not imply exogenous. The institutions of
societies vary across societies and over time...
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This document was uploaded on 02/28/2014 for the course ECON 2328 at Harvard.
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