EMPIRICAL SNAPSHOT OF POVERTY
Today roughly half of the worlds population lives on less that $2/day
More than 1 billion live on less than $1/day which is extreme poverty
This means that the majority of people on earth are poor
In the year 2000
How Deep are the Roots of Economic
Enrico Spolaore and Romain Wacziarg
Journal of Economic Literature, 2012
Notes from The long-term effects of Africas slave trade (Nunn)
Africas economic performance in second half of the 20th century has
been very poor
One explanation for Africas underdevelopment is its history of
extraction characterized by two events:
The Slave Trade and the Origins
of Mistrust in Africa
Nathan Nunn (Harvard)
Leonard Wantchekon (NYU)
Nunn (QJE, 2008) documents the detrimental eects of
Africas slave trade on long-term economic development.
We seek to better understand th
Instructor: Patrick Francois
There are a total of 100 marks available.
Question 1. (30 marks total)
In the unbundling institutions paper we saw that the value of undertaking production to producer j was:
Economics 541 Mid-term exam 2008
You have 80 minutes in total, and the exam is worth 80 marks, so allocate
Answer all questions.
All answers should be brief.
Question 1. (20 marks) Consider an economy with M merchants and A > M
Cultural Beliefs and the Organization of Society: A Historical and Theoretical Reection
on Collectivist and Individualist Societies by Avner Greif
Why do societies fail to adopt the institutional structure of more economically successful
The state of Development Economics
Field, Policy, History Experiments. Lots (Since 2000)
Theory. Not much (Pre 1990)
Applied Econometrics. Some. (1990s)
An example of Good experimental work
Giving Credit Where It is Due Banerjee and Duo (2010)
Daron Acemoglu and Simon Johnson
Seperate eects of contracting and property rights institutions
What are institutions?
Institutions: the rules of the game in economic, political and social interactions.
Institutions determine social organization
North (1990, p. 3):
Institutions are the rules of the game in a society or, more formally, are the human
Democracies and Autocracies
Our attention now shifts to model of democratic transitions.
Many interesting theories and models of political transitions (Lipset (1959); Przeworski
(1991); Linz and Stepan (1996); Myerson (2007, 2008); Mulligan and Tsui (2007
A Theory of Minimalist Democracy
Chris Bidner, Patrick Francois and Francesco Trebbi1
UBC and CIFAR; UBC, CIFAR and NBER; respectively
Chris Bidner, Patrick Francois and Francesco Trebbi