Technological Progress and Economies of Scale

From the late nineteenth century to the early twenty-first century, one of the keys to growth was the exploitation of technologies that displayed increasing returns to scale…

Why Nations Fail: 
Extractive and Inclusive Institutions

Acemoglu and Robinson’s goal is to explain why some nations are rich and others are poor. They present a theory based on the interaction between political and economic institutions. Casual empiricism suggests that its explanatory power is quite strong…

Why Nations Fail:
 Theory is Tidy, History is Messy

Acemoglu and Robinson argue that sustained growth is almost always attained in a particular way: inclusive political institutions develop first, followed by inclusive economic institutions, followed by growth. They recognize the boldness of their claim…

Ding Dong, the Witch is Still Very Much Alive

There were massive changes in economic institutions during the late twentieth century. China abandoned central planning. The Soviet Union collapsed, and its satellite states gained their political freedom and adopted free market systems. Socialism receded throughout Latin America and in India…