Learning the Wealth of Nations

Francisco J. Buera*, Alexander Monge-Naranjo, Giorgio E. Primiceri

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

50 Scopus citations

Abstract

We study the evolution of market-oriented policies over time and across countries. We consider a model in which own and neighbors' past experiences influence policy choices through their effect on policymakers' beliefs. We estimate the model using a large panel of countries and find that it fits a large fraction of the policy choices observed in the postwar data, including the slow adoption of liberal policies. Our model also predicts that there would be reversals to state intervention if nowadays the world was hit by a shock of the size of the Great Depression.

Original languageEnglish (US)
Pages (from-to)1-45
Number of pages45
JournalEconometrica
Volume79
Issue number1
DOIs
StatePublished - Jan 1 2011

Keywords

  • Dynamic of policies
  • Economic growth
  • Learning
  • Market-oriented policies
  • Neighborhood effects

ASJC Scopus subject areas

  • Economics and Econometrics

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