NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Theory, General Equilibrium and Political Economy in Development Economics

Daron Acemoglu

NBER Working Paper No. 15944
Issued in April 2010
NBER Program(s):   DAE   POL

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.

download in pdf format
   (196 K)

email paper

This paper is available as PDF (196 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w15944

Published: Daron Acemoglu, 2010. "Theory, General Equilibrium, and Political Economy in Development Economics," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 17-32, Summer. citation courtesy of

Users who downloaded this paper also downloaded these:
Acemoglu w11940 Modeling Inefficient Institutions
Acemoglu and Yared w15694 Political Limits to Globalization
Acemoglu w15693 Institutions, Factor Prices and Taxation: Virtues of Strong States?
Acemoglu, Gancia, and Zilibotti w15958 Competing Engines of Growth: Innovation and Standardization
Levine w15956 An Autopsy of the U.S. Financial System
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us