Asymmetric Growth and Institutions in an Interdependent World
We present a model of technologically interconnected countries that benefit and potentially contribute to advances in the world technology frontier. Greater inequality between successful and unsuccessful entrepreneurs increases entrepreneurial effort and a country’s contribution to that frontier. Un...
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| Format: | Article |
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University of Chicago Press
2018
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| Online Access: | http://hdl.handle.net/1721.1/118645 https://orcid.org/0000-0003-0908-7491 |
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| author | Robinson, James A. Verdier, Thierry Acemoglu, K. Daron |
| author2 | Massachusetts Institute of Technology. Department of Economics |
| author_facet | Massachusetts Institute of Technology. Department of Economics Robinson, James A. Verdier, Thierry Acemoglu, K. Daron |
| author_sort | Robinson, James A. |
| collection | MIT |
| description | We present a model of technologically interconnected countries that benefit and potentially contribute to advances in the world technology frontier. Greater inequality between successful and unsuccessful entrepreneurs increases entrepreneurial effort and a country’s contribution to that frontier. Under plausible assumptions, the world equilibrium is asymmetric, involving different economic institutions and technology levels for different countries. Some countries become technology leaders and opt for a type of “cutthroat” capitalism with greater inequality and innovations, while others free ride on the cutthroat incentives of the leaders and choose a more “cuddly” form of capitalism with greater social insurance for entrepreneurs. |
| first_indexed | 2024-09-23T11:01:16Z |
| format | Article |
| id | mit-1721.1/118645 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T11:01:16Z |
| publishDate | 2018 |
| publisher | University of Chicago Press |
| record_format | dspace |
| spelling | mit-1721.1/1186452022-10-01T00:34:55Z Asymmetric Growth and Institutions in an Interdependent World Robinson, James A. Verdier, Thierry Acemoglu, K. Daron Massachusetts Institute of Technology. Department of Economics Acemoglu, K. Daron We present a model of technologically interconnected countries that benefit and potentially contribute to advances in the world technology frontier. Greater inequality between successful and unsuccessful entrepreneurs increases entrepreneurial effort and a country’s contribution to that frontier. Under plausible assumptions, the world equilibrium is asymmetric, involving different economic institutions and technology levels for different countries. Some countries become technology leaders and opt for a type of “cutthroat” capitalism with greater inequality and innovations, while others free ride on the cutthroat incentives of the leaders and choose a more “cuddly” form of capitalism with greater social insurance for entrepreneurs. 2018-10-22T15:29:09Z 2018-10-22T15:29:09Z 2017-10 2018-10-16T13:29:59Z Article http://purl.org/eprint/type/JournalArticle 0022-3808 1537-534X http://hdl.handle.net/1721.1/118645 Acemoglu, Daron, James A. Robinson, and Thierry Verdier. “Asymmetric Growth and Institutions in an Interdependent World.” Journal of Political Economy 125, no. 5 (October 2017): 1245–1305. https://orcid.org/0000-0003-0908-7491 http://dx.doi.org/10.1086/693038 Journal of Political Economy Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf University of Chicago Press University of Chicago Press |
| spellingShingle | Robinson, James A. Verdier, Thierry Acemoglu, K. Daron Asymmetric Growth and Institutions in an Interdependent World |
| title | Asymmetric Growth and Institutions in an Interdependent World |
| title_full | Asymmetric Growth and Institutions in an Interdependent World |
| title_fullStr | Asymmetric Growth and Institutions in an Interdependent World |
| title_full_unstemmed | Asymmetric Growth and Institutions in an Interdependent World |
| title_short | Asymmetric Growth and Institutions in an Interdependent World |
| title_sort | asymmetric growth and institutions in an interdependent world |
| url | http://hdl.handle.net/1721.1/118645 https://orcid.org/0000-0003-0908-7491 |
| work_keys_str_mv | AT robinsonjamesa asymmetricgrowthandinstitutionsinaninterdependentworld AT verdierthierry asymmetricgrowthandinstitutionsinaninterdependentworld AT acemoglukdaron asymmetricgrowthandinstitutionsinaninterdependentworld |