Michael Kremer: Converging to Convergence
Michael Kremer presented their work on Converging to Convergence. It was hosted online on 26 February 2021 (Friday) at 9:00 - 10:30am by HKUST Institute for Emerging Market Studies.
Neoclassical theory predicts convergence towards steady-state income, determined by policies, institutions, and culture. Empirical tests of convergence in the 1990s found that conditioning on institutions mattered: unconditionally, the norm was divergence, if anything. Michael revisits these tests with 20 years of additional data. While the literature on institutions emphasizes their historical origins and persistence, he finds substantial changes.
Find out more about this event here.