Theory, general equilibrium and political economy in development economics
By: [by] Daron Acemoglu
Contributors: Massachusetts Institute of Technology. Dept. of Economics
Series: Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- 10-6; Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 10-06.
Publisher: Massachusetts Institute of Technology, Dept. of Economics
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Number of pages: 24
Description: 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. Keywords: economic development, economic theory, methodology of economics, political. JEL Classifications: O10, O12, B41, D50, P48.
Notes: "January 30, 2010."

Includes bibliographical references (p. 23-24).

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