What do Exogenous Shocks Tell Us about Growth Theories?
نویسنده
چکیده
The sources of economic growth and development have been puzzling economists from the modern dawn of the profession. While the Solow-Swan neo-classical model dominated research on growth in the 1960s and 1970s, the 1980s saw the emergence of growth theories that disputed, largely on theoretical grounds, the Solow-Swan assumptions and conclusions. In this paper, we do not examine the determinants of the level of per capita income as an indication that a certain theory has better explanatory power. Rather, we focus on the dynamics of growth following external exogenous shocks (natural disasters). We argue that the data analysis we present suggests that the neoclassical model does not accord very well with the growth experience of developing countries. JEL codes: O11, O40, Q54
منابع مشابه
What Macroeconomic Risks Are (not) Shared by International Investors?
Adopting an asset-market view of international risk sharing, we identify various sources of macroeconomic risk faced by international investors using a structural Vector Autoregression model. We find that most of the risk of exogenous financial market shocks are shared by international investors through the existing asset markets. However, other macroeconomic risks such as those associated with...
متن کاملEvidence-based social design: Introduction
What does social science tell us about how to make thriving online communities? Quite a lot, it turns out. But only if we listen very closely and, at times, employ a translator. Economics and various branches of psychology offer theories of individual motivation and of human behavior in social situations. The theories generalize from observations of naturally occurring behavior, from controlled...
متن کاملHow General Do Theories of Explanation Have
Theories of explanation seek to tell us what distinctively explanatory information is. The most ambitious ones, such as the DN-account, seek to tell us what an explanation is, tout court. Less ambitious ones, such as causal theories, restrict themselves to a particular domain of inquiry. The least ambitious theories constitute outright skepticism, holding that there is no reasonably unified phe...
متن کاملHow General Do Theories of Explanation Have to Be?
Theories of explanation seek to tell us what distinctively explanatory information is. The most ambitious ones, such as the DN-account, seek to tell us what an explanation is, tout court. Less ambitious ones, such as causal theories, restrict themselves to a particular domain of inquiry. The least ambitious theories constitute outright skepticism, holding that there is no reasonably unified phe...
متن کامل