A Question for People Taking Econ 113 This Fall: Amerindian Numbers
links for 2007-08-18

A Question for People Taking Econ 113 This Fall: Resources and Pre-Civil War Growth

This question is for those who have previously exercised their economic theory-growth accounting muscles...

Read Brad DeLong and Marit Rehavi's handout on growth accounting for the pre-Civil War United States compared with Britain. Britain was the heartland of technological innovation and industrialization in the years before 1860. Yet the United States not only started out richer in per capita terms, but its income levels grew faster. How could this be? Do you find DeLong and Rehavi's solution to this puzzle satisfactory? What does it say about how different American economic growth would have been had European superpowers Britain and France continued to seek American empires--had France not sold the Louisiana purchase to Jefferson, and had Britain succeeded in grabbing the old northwest territories north and west of the Ohio River for Canada?