Structural Transformations and Market Failures in Development (Part 2) Daron Acemoglu 经济增长导论课件.pdf

Advanced Economic Growth: Lecture 27: Structural Transformations and Market Failures in Development (Part 2) Daron Acemoglu MIT December 10, 2007 Daron Acemoglu (MIT) Advanced Growth Lecture 27 December 10, 2007 1 / 65 Introduction Development and structural change come with transformation of economy: I major social changes and greater coordination of economic activities. Now focus on multiple equilibria and credit market problems retarding economic development. Finally, some thoughts towards a uniÖed framework. Daron Acemoglu (MIT) Advanced Growth Lecture 27 December 10, 2007 2 / 65 Multiple Equilibria From Aggregate Demand Externalities and the Big Push I Version of Murphy, Shleifer and Vishnyís (1989) model of ìbig pushî, which formalized ideas of Rosenstein-Rodan (1943), Hirschman and Nurske. Economic development viewed as a move from one (Pareto ine¢ cient) equilibrium to another, more e¢ cient equilibrium. Move requires coordination among di§erent individuals and Örms, thus a big push. Multiple equilibria, literally interpreted, are unlikely to be the root cause of persistently low levels of development. If there is indeed a Pareto improvement, it is unlikely coordination cannot be achieved for decades or even centuries. But forces leading to multiple equilibria highlight important economic mechanisms Daron Acemoglu (MIT) Advanced Growth Lecture 27 December 10, 2007 3 / 65 Multiple Equilibria From Aggregate Demand Externalities and the Big Push II Also, dynamic versions of models of multiple equilibria can lead to multiple state states. Two-period economy, t = 1 and 2. Economy admits a representa