Traditional growth theory had preferences technology

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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: 1 2 3 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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