Cookies?
Library Header Image
LSE Research Online LSE Library Services

The reversal of fortune thesis reconsidered

Bandyopadhyay, Sanghamitra and Green, Elliott D. ORCID: 0000-0002-0942-5756 (2010) The reversal of fortune thesis reconsidered. Economic Organisation and Public Policy Discussion Papers (016). London School of Economics and Political Science, London, UK.

[img]
Preview
PDF - Published Version
Download (221kB) | Preview

Abstract

Acemoglu, Johnson, & Robinson (2002) have claimed that the world income distribution underwent a "Reversal of Fortune" from 1500 to the present, whereby formerly rich countries in what is now the developing world became poor while poor ones grew rich. We question their analysis with regard to both of their proxies for pre-modern income, namely urbanization and population density. First, an alternative measure of urbanization with more observations generates a positive (but not significant) correlation between pre-modern and contemporary income. Second, we show that their measure of population density as a proxy is highly flawed inasmuch as it does not properly measure density on arable land, and when corrected with better data the relationship is no longer robust. At best our results demonstrate a Reversal of Fortune only for the four neo-Europes of Australia, Canada, New Zealand and the United States; at worst, we show no Reversal for other former colonies.

Item Type: Monograph (Working Paper)
Official URL: http://sticerd.lse.ac.uk/
Additional Information: © 2010 LSE
Divisions: International Development
Economics
STICERD
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HN Social history and conditions. Social problems. Social reform
JEL classification: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E24 - Macroeconomics: Employment; Unemployment; Wages; Intergenerational Income Distribution (includes wage indexation)
Date Deposited: 10 Jan 2012 14:21
Last Modified: 15 Sep 2023 23:22
URI: http://eprints.lse.ac.uk/id/eprint/41260

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics