Wednesday, May 23, 2012

Chris Dillow — The State & Growth: What's The Mechanism?

Whenever he was faced with a blustering student - which was often - my old economics tutor, the late Andrew Glyn, would ask: "What's the mechanism?"
Read it at Stumbling and Mumbling
The State & Growth: What's The Mechanism?
by Chris Dillow | Investors Chronicle

Another reason why abstract models don't work and historical-institutional analysis does.

1 comment:

Matt Franko said...

"There is a long history of macroeconomic studies which have found that economies where public spending is a lower share of national income tend to see stronger economic growth."

This for instance is ex-post accounting. Does not say anything about causation. In fact sounds as if it could be self-evident...