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Theory, General Equilibrium, and Political Economy in Development Economics
Open accessAbstract
I 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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Cites
Identification of Causal Effects Using Instrumental Variables
Angrist, J. D., Imbens, G. W., & Rubin, D. B. (1996) · Journal of the American Statistical Association · doi:10.1080/01621459.1996.10476902 · Cited by 4,230
Cited by
Blunt Instruments: Avoiding Common Pitfalls in Identifying the Causes of Economic Growth
Bazzi, S., & Clemens, M. A. (2013) · American Economic Journal: Macroeconomics · doi:10.1257/mac.5.2.152 · Cited by 640
Going to a Better School: Effects and Behavioral Responses
Pop-Eleches, C., & Urquiola, M. (2013) · American Economic Review · doi:10.1257/aer.103.4.1289 · Cited by 411
Disentangling the Effects of a Banking Crisis: Evidence from German Firms and Counties
Huber, K. (2018) · American Economic Review · doi:10.1257/aer.20161534 · Cited by 299
Can Informed Voters Enforce Better Governance? Experiments in Low-Income Democracies
Pande, R. (2011) · Annual Review of Economics · doi:10.1146/annurev-economics-061109-080154 · Cited by 286
The Effect of Fertility Reduction on Economic Growth
Ashraf, Q. H., Weil, D. N., & Wilde, J. (2013) · Population and Development Review · doi:10.1111/j.1728-4457.2013.00575.x · Cited by 266
Metadata
- Authors
- Acemoglu, D.
- Venue
- Journal of Economic Perspectives
- Publisher
- American Economic Association
- Published
- 2010-08-01
- Volume
- 24
- Issue
- 3
- Pages
- 17-32
- ISSN
- 0895-3309 (ISSN-L)
- OpenAlex
- W3122913021
- Cited by
- 172
- References
- 1
- FWCI
- 32.30
- Type
- journal article
- Language
- en
- Open access
- bronze
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
