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Skills, Franchise and Industrialization

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  • Boschini, Anne

    ()
    (Dept. of Economics, Stockholm University)

Abstract

In this paper the skill distribution is proposed as being fundamental for technological transitions, besides the economic and political variables normally considered. The setting is an endogenous growth model with non-overlapping generations, where agents are heterogeneous with respect to wealth, skills and political power. It is shown that the skill distributionis as imporant as the initial wealth distribution and the type of political regime in determining the subsequent economic development of a country. The results indicate that the time horizon matters when judging which institutional framework has most potential to generate a technological transition. Moreover, it is shown that there is no setup of initial characteristics that most favors a country's development in all situations. The outcomes of the model are consistent with historical data from 1820 to 1913 for 23 countries.

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Bibliographic Info

Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 1999:10.

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Length: 48 pages
Date of creation: 06 Aug 2003
Date of revision:
Handle: RePEc:hhs:sunrpe:1999_0010

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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
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Web page: http://www.ne.su.se/
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Keywords: skills; economic development;

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  1. Daron Acemoglu & James A. Robinson, 2000. "Why Did The West Extend The Franchise? Democracy, Inequality, And Growth In Historical Perspective," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1167-1199, November.
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  8. Barro, Robert J, 1996. " Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
  9. Perotti, Roberto, 1996. " Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-87, June.
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  12. Roubini, Nouriel & Swagel, Phillip & Ozler, Sule & Alesina, Alberto, 1996. "Political Instability and Economic Growth," Scholarly Articles 4553024, Harvard University Department of Economics.
  13. Per Krusell & Jose-Victor Rios-Rull, 1997. "On the size of U.S. government: political economy in the neoclassical growth model," Staff Report 234, Federal Reserve Bank of Minneapolis.
  14. Saint-Paul, Gilles & Verdier, Thierry, 1993. "Education, democracy and growth," Journal of Development Economics, Elsevier, vol. 42(2), pages 399-407, December.
  15. Robert J. Barro, 1999. "Determinants of Democracy," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S158-S183, December.
  16. Persson, T. & Tabellini, G., 1993. "Is Inequality Harmful for Growth," Papers 537, Stockholm - International Economic Studies.
  17. Lindert, Peter H. & Williamson, Jeffrey G., 1985. "Growth, equality, and history," Explorations in Economic History, Elsevier, vol. 22(4), pages 341-377, October.
  18. Alesina, Alberto, et al, 1996. " Political Instability and Economic Growth," Journal of Economic Growth, Springer, vol. 1(2), pages 189-211, June.
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