Theory, General Equilibrium and Political Economy in Development Economics
AbstractI discuss the role of economic theory in empirical work in development economics with special emphasis on general equilibrium and political economy considerations. I argue that economic theory plays (should play) a central role in formulating models, estimates of which can be used for counterfactual and policy analysis. I discuss why counterfactual analysis based on microdata that ignores general equilibrium and political economy issues may lead to misleading conclusions. I illustrate the main arguments using examples from recent work in development economics and political economy.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15944.
Date of creation: Apr 2010
Date of revision:
Publication status: published as Daron Acemoglu, 2010. "Theory, General Equilibrium, and Political Economy in Development Economics," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 17-32, Summer.
Note: DAE POL
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Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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Other versions of this item:
- Daron Acemoglu, 2010. "Theory, General Equilibrium, and Political Economy in Development Economics," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 17-32, Summer.
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-08 (All new papers)
- NEP-CBA-2010-05-08 (Central Banking)
- NEP-DEV-2010-05-08 (Development)
- NEP-DGE-2010-05-08 (Dynamic General Equilibrium)
- NEP-HPE-2010-05-08 (History & Philosophy of Economics)
- NEP-POL-2010-05-08 (Positive Political Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Theory, General Equilibrium and Political Economy in Development Economics
by Christian Zimmermann in NEP-DGE blog on 2010-05-13 00:31:06
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