How do large technological advances cross cultural and civilizational boundaries? The puzzle is this: large technologies are not simply cool new devices, but rather complex systems of scientific knowledge, engineering traditions, production processes, and modes of technical communication. So transfer of technology is not simply a matter of conveying the approximate specifications of the device; …
Super-high-density Shanghai
Shanghai is a city approaching 20 million people, and it is arguably the most economically dynamic city in Asia. This concentration of population and economic activity surely has important long-term consequences. There was an interesting piece in the Shanghai Daily recently by Nate Stein, called "Sky's the limit for well planned city of Shanghai." Stein makes a …
Strategies of economic adaptation
Charles Sabel and Jonathan Zeitlin made a powerful case for there being alternative institutional forms through which modern economic development could have taken place in their 1985 article, "Historical Alternatives to Mass Production: Politics, Markets and Technology in Nineteenth-Century Industrialization" (link). In an important volume in 1997, World of Possibilities: Flexibility and Mass Production in …
Intangible services
Neoclassical economics presents a pretty simple theory of the equilibrium price of a manufactured good. This theory also extends to a theory of the wage for skilled and unskilled labor. We postulate production and demand curves, and the equilibrium price is the point where supply equals demand. The supply curve is influenced by factors governing …
Proto-industrialization
The concept of proto-industrialization became an influential one in economic history in the 1970s and 1980s. The term refers to a system of rural manufacture that was intermediate between autarchic feudal production and modern urban factory production. Variously described as rural manufacturing, domestic manufacture, cottage industry, and a "putting-out" system, it was a dispersed system …
Development economics in historical context
Hollis Chenery and T. N. Srinivasan published the Handbook of Development Economics in 1988. It was state-of-the-art in the late 1980s. It is interesting to look back at the Handbook twenty-two years later to see how it stands up today. First, the contributors. The volume is a dream-team of development thinkers from the 1970s and 1980s: Amartya …
Continue reading "Development economics in historical context"
More on jobs and people in Michigan
Olivier Blanchard and Lawrence Katz did an important empirical study of regional adjustment to employment shock in 1992 (link). Here is their central conclusion: "We have shown that most of the adjustment of states to shocks is through movements of labor, rather than through job creation or job migration." (54) In other words, they find …
Prosperity based on commodities
An earlier post looked at economic prosperity and standard of living from the point of view of a grain-based agricultural economy. There I singled out intensive, extensive, and technology-based growth, and the effects these scenarios had on the standard of living for a farming population. This is a particularly simple case, since it equates standard …
Varieties of economic progress
The study of economic history reveals a number of different patterns when it comes to agricultural production and the standard of living of a given population in a region. Let's think about the issue in very simple terms. Imagine that the standard of living for a population in a region is determined by the amount …
Marx on Russia
In 1881 Marx wrote a letter to Vera Zasulich, an important Russian follower, that addresses the question of theory and prediction when it comes to thinking about the future course of history. In particular, he denies that his theories have determinate predictive implications for the development of capitalism or socialism in Russia. Here is a link to the …
