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A Quantitative Exploration of the Golden Age of European Growth

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  • Francisco Alvarez-Cuadrado

    ()
    (Department of Economics, McGill University)

  • Mihaela I. Pintea

    ()
    (Department of Economics, Florida International University)

Abstract

Income per capita in some Western European countries more than tripled in the two and a half decades that followed World War II. The literature has identified several factors behind this outstanding growth episode, specifically; structural change associated with large migrations from agriculture to nonagricultural sectors, the Marshall Plan combined with the public provision of infrastructure, the surge of intra-European trade, and the reconstruction process that followed the devastation of the war. This paper is an attempt to formalize and quantify the direct contribution of each one of these factors to growth during the European Golden Age. Our results highlight the importance of reconstruction growth and structural change, and point to the limited role of the Marshall Plan, and the late contribution of intra-European trade.

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File URL: http://casgroup.fiu.edu/pages/docs/2249/1275227712_08-05.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by Florida International University, Department of Economics in its series Working Papers with number 0805.

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Length: 29 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:fiu:wpaper:0805

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Keywords: Economic Growth; European Economic History 1913-; Computable General Equilibrium Models.;

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Citations

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Cited by:
  1. Diego A. Comin & Bart Hobijn, 2010. "Technology Diffusion and Postwar Growth," Harvard Business School Working Papers 11-027, Harvard Business School.
  2. Alvarez-Cuadrado, Francisco, 2008. "Growth outside the stable path: Lessons from the European reconstruction," European Economic Review, Elsevier, Elsevier, vol. 52(3), pages 568-588, April.
  3. Esteban-Pretel, Julen & Sawada, Yasuyuki, 2014. "On the role of policy interventions in structural change and economic development: The case of postwar Japan," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 40(C), pages 67-83.
  4. Lepore, Amedeo, 2012. "L’andamento della spesa per l’intervento straordinario nel Mezzogiorno d’Italia, dalla golden age alla fine del XX secolo. (The trends in the expenditures of the extraordinary intervention in so," De Computis "Revista Española de Historia de la Contabilidad". De Computis "Spanish Journal of Accounting History"., Asociación Española de Contabilidad y Administración de Empresas (AECA). Spanis, Asociación Española de Contabilidad y Administración de Empresas (AECA). Spanish Accounting and Business Administration Association., issue 16, pages 76-119, June.

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