EC104 Topic 4 reading summary

amarjotsidhu's version from 2015-06-06 02:13


Question Answer
Broadberry on British productivity vs. Germany and US in the late 19th centurynot because of high productivity in industry but because of high productivity in services and a relatively small agricultural sector. British labour force had less general education than in US/Ger but this was offset by a large number of higher level qualified professionals in service sector
Broadberry on US services growth vs. Britaingrowth of big business in US services with high volume, low margins and hierarchical management ('industrialisation of services') mirrored the rise of mass production in US industry = US caught up with Britain in services, although Britain still ahead
Crafts on initial impact of GPTinitial impact of GPT on overall productivity growth is minimal and realisation of its true potential may take several decades e.g. electricity; 80 year lag between James Watt's invention of the steam engine and the boost of electricity to American economic growth -> lag down to the fact that at a time if primitive science and technology, it took time to understand true potential of steam; lag in contribution of steam explains modest rate of productivity growth during British industrial revolution followed by acceleration during the mid 19th century
Mokyr on what technological progress isany change in the application of information to the production process in such a way as to increase the efficiency of the process = lower costs, or better quality products
Mokyr on innovation and inventionthey are complements in the long run. without invention, innovation will slow down and stop
Mokyr on growth and past knowledgemuch growth derived from previous knowledge rather than generation of new knowledge
Kuznets on technology as a source of growthadvancing technology only offers potential for growth, is not sufficient in itself. To ensure its efficient employment, institutional and ideological adjustments must be made
Kuznets on most distinctive feature of MEGhigh aggregate growth rate with disrupting effects and new problems e.g. pollution
Kuznets on LDCs and technologyLDCs struggle to use the large potential of technology
Allen on macro and micro inventionsIR driven by macro inventions (e.g. steam engine - set path for long trajectories of advance, made radical change) and micro inventions (e.g. water frame - improvements made in the trajectory produced by macro inventions in order to help macro inventions realise their potential)
Allen on consequences of Britain's early lead in modern global economyexpensive labour and cheap energy. high real wage stimulated innovation as it meant Britain had a mass market for luxury goods + better placed to buy education and training = innovation; cheap energy = steam technologies could develop
Van Zanden on rise of Holland 1350-1850down to pressure to develop non agrarian activities because of population growth and decline in agrarian earnings
Voth et al. on Britain and Malthusian trapBritain first to break out of it, with population and living standards growing together after 1750
Voth et al. on causes of technological progress in Europebiggest determinant of progress was fertility regime and use of differentiated capital inputs
Acemoglu on technology and educationtechnology is skills biased - it increases returns to education
Lewis on low wages in agriculturebecause of large proportion of population involved in it. wages in capitalist sector higher = transferral of labour = higher productivity and investment
Van Zalden on Holland's economy and MEGHolland not first to achieve MEG. it was at last stage of merchant capitalism with specialisation and relatively high wages but proto industry disappeared; did not have coal for IR