The Causes of Post-War Slumps and Miracles. An Evaluation of Olsonian Views on German Economic Performance in the 1920s and the 1950s
AbstractThis paper examines whether the different macroeconomic performances of the German economy in two post-war decades provide evidence for the theory (first advanced by Mancur Olson) that sharp institutional breaks are conducive to economic growth because they destroy the existing network of distributional coalitions. It is shown that the answer to this question is negative because the institutional break in Germany after World War II was much less complete than assumed by Olson and others: all major interest groups quickly regained their traditional strength, and they did so in organizational forms that were not substantially more encompassing than before in the sense of Olson's theory. The paper proposes an alternative interpretation of the relevant periods in terms of stable corporatist institutions that reduce the absorptive capacity of an economy in a symmetric way, thus exacerbating the growth and employment effects of negative and positive exogenous shocks that originate in changes of the terms of trade or the speed of productivity growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 981.
Date of creation: Jul 1994
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Find related papers by JEL classification:
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
- N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.