SUBJECT INDEX

1870 Education Act 209 1902 Balfour Act 209 ^-convergence 582, 586, 828 σ-convergence 582, 828 abatement 1755, 1773 abatement intensity 1776 absorptive capacity 78 Academie Royale des Sciences 1137, 1143 access costs 1121 accumulation mechanism 1600 accumulation technology 1605 acquiring and processing information 871 acquis communautaire 1008 Adam Smith 1134 adaptation 1000 adaptive efficiency 1127 AdolfWagner 1741 adoption and imitation R&D 857 adult mortality rate 708 advantage of backwardness 79 adverse selection 1720 age of the leadership 1208 agglomeration effects 326, 1473, 1481, 1483, 1484, 1486, 1487 aggregate demand 503 aggregate production function 475, 1383, 1391 aggregation 543 agriculture 229, 275, 443, 683, 721, 1227 air pollutants 1761

AKmodel 10, 823, 1017, 1104, 1779 Albrecht von Haller 1140

Alessandro Volta 1151 AlexanderChisholm 1159 alternating current 1195 appropriate incentives 973 appropriate institutions 100 appropriate technology 500, 734 appropriate technology and development 136 arable land 725 arbitrage equation 1080 Archibald Cochrane 1142 Arthur E.

Arthur Young 1138

Asian financial crisis 969 assembly lines 1310 assortative matching 1324, 1335 asymmetric information 981 Atlantic trade 217 autarky 1422, 1426, 1436, 1437, 1439, 1441, 1443-1446, 1452, 1456, 1463, 1464, 1466, 1472, 1485-1488

average labor productivity 769, 778, 800

baby boom 1231 baby bust 1231 balanced growth path 1077, 1404, 1775, 1776, 1794

balanced growth rate 824 Balassa-Samuelson effect 1002 banking 343, 867, 868, 878, 881-886, 893,

895,907,913,916,918-920

bargaining power 497

barriers to international trade 1507, 1508, 1512 barriers to technology adoption 717, 818, 827 barriers to trade 1507-1510, 1512, 1532, 1538 BEA-IBM constant quality price index 751 benefits to backwardness 837 BenjaminFranklin 1140 BenjaminHuntsman 1128 Benjamin Thompson 1141

Berlin Academy 1143 Bertrand competition 345 “best-practice” 981 bifurcation 323 big push 340, 503, 973, 1001 Birmingham Lunar Society 1142 birthweight 709 black market premium 1019 borders 1501, 1502, 1504-1507, 1510, 1511,

1513, 1517, 1518, 1533, 1535 borrowing constraints 82, 358 buffer stock of children 227

Caldwell hypothesis 1265 capital accumulation 233, 890, 895, 901, 1021, 1788

capital consumption 787

capital deepening 777

capital flight 994

capital flows 505, 533

capital income tax 845

capital market imperfections 872

capital markets 234, 477, 509

capital quality 761,791

capital service flows 761

capital share xxiv, 686, 696, 1021, 1379, 1382, 1387, 1388, 1394, 1397, 1399, 1405

capital stock 791, 891, 1024, 1790

capital taxation 21

capital-embodied technicalchange 1292, 1333, 1346

capital-embodied technological change 1279 capital-output ratio 484

capital-skill complementarity 257, 1298, 1307, 1308, 1361

carbon monoxide 1772

carded wool and linen 1130

Carl Linnaeus 1135

Cavendish 1151

central bank independence 974 centralized bargaining 1326,1329

CES 683

child labor 230, 373, 1228

child labor law 230

chlorine bleaching 1127

choice of plant technologies 1392

city formation 1585

city sizes 1566, 1568, 1583

civil liberties 1006

Claude Berthollet 1128, 1133, 1141

CleanAirAct 1769

Coase Theorem 422

Cobb-Douglas production function 504, 683, 1379, 1382, 1383, 1391

cognitive ability 1312

Colin MacLaurin 1139

collateral 350

collective action 391, 1663

collective bargaining 1325

college premium 1282, 1286 colonial powers 1054 colonialism 217

Combination Act 1168

commercial capitalism 1171

commitment problem 390

common law 506

common property 422 communications technology 751 comparative advantage 857 competition 7, 423, 1409, 1412 competitive fringe 73 competitive search 1339 complementarity 162, 365, 1598 complementarity in innovation 144 complete convergence 595 composition of capital 682 composition of the capital stock 711 computers 747

conditional convergence 591, 1046

confined exponential diffusion 939

conflict of interest 390

constant elasticity formulation 1800

constant returns to scale 477, 527, 825, 1018, 1290, 1501, 1504

constant returns to scale technology 1379 consumption 514, 1018, 1186, 1355 contract enforcement 973

convergence 81, 308, 337, 477, 577, 583, 804, 899, 937, 941, 997, 1400, 1403, 1413, 1605

convergence clubs 77, 81, 256, 938, 943 convergence hypothesis 561

convex neoclassical model 307

convex technology 15, 314

coordination 328, 330, 1645

coordination failure 503, 1001, 1329, 1645

Copernicus 306

core-periphery models 1578

corporate governance 870, 872, 875, 882-884, 922, 974

corruption 364, 506, 883, 974

cost of living 1473, 1474

country size 842, 1501-1506, 1509, 1510, 1513, 1514, 1516, 1518-1522, 1524-1527, 1530, 1531, 1538

Crawshays 1159

creative destruction 1070, 1332

credit constraints 205, 360, 509, 1600

credit market 303, 351, 477, 509

credit market imperfections 1720

crime 1713

criteria pollutant 1785

Crompton 1159

cross-country growth regression xxiii, 576, 971 cross-country income distribution 330, 597, 887, 920, 921

cross-country regressions 506, 900, 919 cross-sectional risk 876 crude birth rates 190, 191, 201

crude marriage rates 191

culture 397, 922, 923, 1115, 1268

currency board 994

d'Alambert 1137

Daniel Defoe 1127

Darwinian methodology 265

Darwinian survival strategies 231

David Hartley 1136

David Mushet 1130

Davies Gilbert 1139

de facto political power 391

de jure political power 391

debt contracts 871, 883

debt sustainability 973

decentralization 1505, 1535, 1539

default 350, 355

demand for human capital 205

demand spillovers 341 democracy 392, 1006, 1409

demographic patterns 177, 190, 1100, 1147, 1231, 1706

deposit insurance 907, 908

depreciation rate 690

desired consumption 1204, 1217

deskilling 1160

destruction of steam technology 1191 deterministic cycles 158 deunionization 1326, 1328

devaluation 990

development 990, 1017

development accounting 499, 681 development trap 940

dictatorship 392

Diderot 1136, 1137

diffusion 1136

diffusion lags 1194

diffusion of technology 1598

diminishing returns 308, 503, 523, 825, 1021, 1430-1436, 1439, 1442, 1444-1446, 1453, 1455, 1456, 1461, 1464, 1466, 1472, 1490 directed technical change 130, 1306, 1312, 1322

distance to the technological frontier 99 distribution of entries across sectors 1202 distribution of firm sizes 531

distribution of ratings for issues of new corporate bonds 1214

distribution of wealth 476

distributional conflict 1609 distributional dynamics 582 divergence 635

diversification 357, 870, 875, 876, 1001 diversified metro areas 1575 double their per capita income 1403 dual economy models 1577 dualism 1726

Dugald Stewart 1134 dynamic efficiency 986 dynastic construct 1380

earnings compression 1603 earnings volatility 1331 economic development 867, 1706 economic geography 1547 economic institutions 389 economic integration 1436, 1438-1441, 1450, 1453, 1490, 1511-1513, 1536

economic losers xxi, 434 economies of scale 1503, 1512, 1538 Edgeworth-Pareto substitutes 1252 education 102, 490, 496, 1116, 1155, 1238, 1706

education finance 1603, 1606

education premium 1300, 1303, 1336, 1354, 1355

education reforms 230 effective knowledge 1124 efficiency 531, 687, 1399, 1645 efficient institutions xxi, 422 elasticity of female labor supply 1267 elasticity of substitution 8, 728, 1027, 1297, 1379

electricity 1184, 1197, 1310 emission intensity of GDP 1818 emissions 1753, 1769 employment rate 1289, 1352 Encyclopedias 1137 Encyclopedie 1137 endogenous fluctuations 157 endogenous growth theory 558, 820, 1017, 1021, 1079, 1778 endogenous institutions 1623 endogenous skill-bias 132 endogenous supply of skills 1307 endpoints of a GPT era 1194 energy 1755, 1789, 1790 enforcement of contracts 1032 entrepreneurs 523, 998, 1119 entrepreneurship 998 entry, exit and mergers 1186, 1204 environment 1751

Environmental Catch-up Hypothesis 1811 environmental control costs 1761 Environmental Kuznets Curve (EKC) 1752 environmental quality 1751,1758 epistemic base 1123 equity markets 878, 920, 1650 eras of GPT adoption 1208 Erasmus Darwin 1135, 1140 escape competition effect 88 estimates of aggregate relative efficiency 1394 ethnic differentials 1035

ethnic groups 1034

ethnic heterogeneity 1681

ethnolinguistic fractionalization 954, 1055 European colonialism 396

European mortality 417

Eurosclerosis 1612

event study approaches xxiii, 636

evolution 231

evolution of inequality 1604

evolution of the size distribution of cities 1549 evolutionary advantage 232 ex-post real interest rates 1220

exchange 881 exchangeability 581, 1663 exhaustible natural resource 1788 exhaustible resource 1755

exogenous technological progress 1774 expanding variety 116

expectational indeterminacy 162 expectational stability 163 experience premium 1285, 1313-1315, 1318, 1319

experimental philosophy 1163 exponential diffusion 939 export-processing zone (EPZ) 984 expropriation 394, 402 extended family system 1742 extended reproduction 1703 extent of the market 1514

external finance 910, 911, 914, 915

external financing constraints 868 externalities 326, 476, 502, 817, 819, 1000, 1020, 1503, 1504, 1644

extractive institutions 1054

extrinsic mortality risk 275

factor accumulation 317, 493, 1786

factor neutral 728

factor price equalization 1446, 1448, 1452, 1453, 1456, 1459, 1461, 1464-1466, 1472, 1476, 1480 factor prices 212 factor shares 729 factor-biased innovation 131 factor-specific productivity 1289 factor-specificity 1360 factory system 306, 1160 family size 1737 farmers 1705 female education 234 female labor force participation 233, 1229 female-male earning ratios 1730 female’s age of marriage 191 fertility 174, 177, 182, 183, 191, 226, 373, 1072, 1104, 1115, 1148, 1227, 1233, 1377, 1378, 1381-1383, 1386, 1399, 1400, 1710, 1737, 1794 feudal 440 feudalism 440 finance companies 918 financial contracting 528 financial development 81, 150, 504, 890, 891, 898, 901, 911, 916, 919, 921, 1033, 1220 financial development indicators 890 financial functions 869, 870 financial instruments 869 financial intermediaries 871, 889, 890, 898, financial liberalization 974 financial markets 890, 918 “financial restraint” 981 financial sector reform 979 financial structure 920 first product or process innovation 1210 first-generation idea-based growth models 1092

fiscal decentralization 1564 fiscal policy 21, 923, 1033 fiscal system 1606 fix-price 1715 fixed costs 299, 340, 527 flexible technologies 1598, 1613, 1619 food-canning 1150 foreign exchange 1020 formal institutions 1005, 1671, 1713 fractionalization 1505 FrancisBacon 1133, 1134 FrancisHome 1138 Francis Jeffrey 1134 Francis Upton 1153 free riding 873, 875, 882, 1661 free trade 1034

free trade club 1408, 1409, 1411-1413 frictional inequality 1331,1333 frictions in the labor market 1280 frontier technology 100 functional form 538 functional specialization 1575 functioning of the financial system 890

gas-lighting 1127 gender differences 1706 gender gap 232,1266 gender wage gap 1285, 1312 General Electric (GE) 1211 General Motors (GM) 1211 general purpose technologies 1107, 1295,

1313, 1721

general skills 1337 genetic evolution 260 geography 277, 337, 339, 349, 397, 609, 620,

922, 923, 1054, 1554

George Campbell 1136

George Cayley 1140

George Melville 1153

George Stephenson 1141

Gibrat’s Law 1554

Gini coefficients 536, 920

glass industry 1127

globalization 280, 1426, 1436-1439, 1441­1444, 1446, 1448, 1451, 1452, 1454­1456, 1463, 1464, 1472-1475, 1480-1482, 1485-1488, 1490, 1491

Gompertz growth model 947 government failures 505, 998

GPTeras 1185 gradualism 989

GrandeEncyclopedie 1136

GreatDepression 1262

GreatDivergence 174

Green Solow model 1754 growth accounting 314, 1101 growth disasters 322, 567 growth miracles xxiii, 322, 565, 1389, 1397,

1403, 1412

growth rates 819

growth slowdown xxiii, 567, 825

growth strategies 971

guilds 1162

Gustave Adolphe Hirn 1150 Gustave-GaspardCoriolis 1159

Harberger triangles 1030 health 265, 490, 682, 1706 hedonic model 750, 751

Henry Cort 1139

Henry George Theorem 1567

Hermann Claudius 1153

heterodoxy 1004

heterogeneity 491, 1502, 1505, 1506, 1510­1513, 1533, 1538, 1611, 1736

heteroskedasticity 640

“Hicks-neutral” 767

high-quality institutions 1005 high-school movement 1311 Hirschman-Herfindahl index 1556

historical self-reinforcement 317, 355 HIV/AIDS 971

home goods 1252

Hong Kong 984

horizontal innovation 114

horsepower in manufacturing 1187, 1188 hours worked 695

household appliances 1312

household capital 1252

household production 1227

household products 1258

housework 1251

human capital 174, 178, 340, 354, 475, 491, 682, 786, 806, 818, 872, 878, 938, 949, 1017, 1067, 1104, 1116, 1148, 1230, 1318, 1360, 1504, 1517, 1597, 1717

human capital externalities 502, 821, 1518 human capital promoting institutions 278, 280 humoral theory of disease 1124

Humphry Davy 1133, 1141, 1152

idea production function 1107

idea-based growth models 1090

ideas 819, 1065

identity 1654

imitation 73, 100, 127, 857

imitation costs 946

impatience traps 373

imperfect competition 340, 1082

import licenses 1031

import tariffs 1002

import-substituting industrialization (ISI) 984 import-substitution 973, 1034

improvement in the efficiency of the GPT 1195 incidental institutions xxi, 425

income disparity 304

income tax 1019

incomplete contracts 429, 518

increasing returns 299, 476, 501, 623, 1018, 1066, 1068, 1073, 1086, 1106, 1501, 1504, 1799

indivisibilities 357 indivisible projects 880 induced innovation 1798 IndustrialEnlightenment 306,1134 industrial policies 975

Industrial Revolution 176, 306, 877, 1098, 1115

industrialization 174, 1000, 1227, 1504, 1531 industry-level studies 919

inequality 212, 302, 536, 1597, 1600 infant and child mortality rates 225 infant mortality rates 226 inflation 903, 916, 1027 informal credit 480 informal sector 1026 information asymmetries 871, 878, 885, 922 information technology 746, 755, 756, 765, 771, 797, 798, 1184, 1194, 1279, 1293, 1301, 1303, 1320

informational complementarities 1321 initial conditions 320, 335, 598 initial public offerings (IPOs) 1200 innovation 27, 82, 100, 101, 857, 881, 1000, 1119, 1185, 1210

institutions 6, 7, 69, 277, 301, 364, 388, 506, 579, 867, 923, 973, 997, 1007, 1032, 1054, 1088, 1107, 1115, 1162, 1166, 1516, 1536, 1711

insurance 303,351,512,878 insurance companies 918 intangible capital 1393, 1394 integrated circuits 747 integrated economy 1425, 1426, 1430, 1431, 1433, 1437-1439, 1441, 1443, 1444, 1446-1450, 1453, 1455-1457, 1465, 1472, 1475, 1476, 1482, 1483, 1488 intellectual property rights 128, 1119, 1165 inter-temporal optimization 1719 interest rates 479, 1204 intermediaries 869, 890, 918 internal combustion 1196 internal finance 910 international diffusion of knowledge 821 international externalities 818 international financial codes and standards 974 International Monetary Fund 298 international trade 216, 281, 1425, 1446, 1472, 1473, 1490 internationally harmonized prices 785, 806 Internet 751

interstate commerce clause 1408 intertemporal elasticity of substitution 1032 intertemporal externality 117 intrinsic mortality risk 275

inventions 1119

investment xxvii, 101, 197, 478, 493, 506, 819, 914, 998, 1018, 1106, 1200, 1397, 1400, 1407

Jacquardloom 1127

Jacques-Franjois Demachy 1137

James Keir 1128, 1136, 1151, 1159

James P. Joule 1139, 1149

JamesWatt 1136,1159

Japanese “model” 1007

Jean-AntoineChaptal 1128

Jean-Victor Poncelet 1159

Jesse Ramsden 1128

job destruction 1332, 1335, 1346

John Coakley Lettsom 1140

John Ericsson 1140

John Farey 1127

John Harrison 1128

JohnHerschel 1135

John Kay 1159

John Playfair 1163

John Roebuck 1159

John Smeaton 1128, 1157, 1159

John Whitehurst 1137, 1159

joint stock company 879

Jonas W.

JosephBanks 1140

Joseph Black 1128, 1136, 1139

Joseph J. Lister 1152

Joseph Priestley 1133, 1136

Josiah Wedgwood 1151 just-in-time production 1409

K and r strategies 231 kinship xx, 364, 367 knowledge 1017, 1071 knowledge externalities 87, 818, 1105, 1566, 1605, 1799

knowledge or technology component 1390

Kuznets hypothesis 1282

Kyoto Protocol 1792

labor augmenting technological progress 1773 labor force participation 233, 1285, 1706 labor inputs 761, 776, 805 labormarket 1340, 1353, 1606, 1712

labor mobility 1342 laborproductivity 527, 1410, 1411 labor quality 763, 794 labor share 1288, 1347 labor-augmenting technological change 1022 Laggards 1402

Lagrange stability 377

laissez-faire 120, 994, 1597, 1601 land productivity 183

land-labor ratio 183 language 1121

late starters 1376, 1396, 1401

law and finance 887

law and order 1117

leadership 1648, 1657 learning 516, 1360 learning and sunspots 162 learning externalities 821,999 learning-by-doing 821, 1000, 1295, 1314, 1334 Leblanc soda making 1127

legal system 508, 868, 869, 886, 887, 898, 919, 922, 923

less developed economies 174

life expectancy 185, 276, 954, 1704

life insurance 897 lifetime earnings 1354 limited enforcement of contracts 1355 limited patent protection 122 limits to growth 1751, 1788 liquidity 355, 872, 875-877, 882, 894, 896, 897 literacy rates 197 loan renegotiations 884

lobbying 1629

local financial development 896, 908

local government 1688

local markets 1473, 1487, 1489

localization economies 1565

logistic diffusion 939

logistic technology diffusion 942, 946

Lombe brothers 1149

LouisNavier 1159 LouisPasteur 1150

Louis-JacquesGoussier 1137 love of variety 822

Luddite rebellion 1167 Ludwig Prandtl 1153

machine-breaking 1167 macroeconomic policies 986, 1017, 1033 macroeconomic volatility 879, 1045 macroinventions 1129 malnutrition 373

Malthusian models 174, 180, 182, 252, 256, 855, 1099, 1378, 1781

Manchester Literary and Philosophical Society 1142

manufacturing 911, 1229

MarcI.

market size 1430, 1432-1436, 1438-1440, 1444-1446, 1450, 1452, 1453, 1455, 1456, 1459, 1461, 1464, 1472, 1487-1490, 1501, 1504, 1505, 1514, 1516, 1518, 1519, 1532 marketization 1739

markets 868, 869, 881, 883, 885, 886, 890, 893, 918, 919, 973, 994, 1119

marriage age 191 marriage institutions 231 Marshallian dynamics 328, 366 mass production 1311 master-apprentice relationship 1128 matching 340, 346, 1332, 1338, 1346, 1347, 1361

Matthew Boulton 1162 mechanization 1229 megacities 1550, 1583 memory chips 748 mercantilism 1126, 1162 metallurgical knowledge 1132 MichaelFaraday 1156 microinventions 1125 microprocessors 748 microscope 1152 MicrosoftCorporation 750, 1212 migration 369, 1712

Mincerian returns to education 484, 700, 1727 minimum wage 1603 misallocation of capital 478 model uncertainty 559, 612, 613 ModernGrowthRegime 176

Modified Political Coase Theorem 424 monitoring 870, 875, 1742 moral hazard 981, 1322, 1720 mortality 184 multi-sector growth models 4, 5

multifactor productivity 784

multiple regimes 145, 150, 162, 335, 621, 622, 727, 1021, 1338, 1659

natural experiment 396

natural resources 1751, 1791 natural selection 231

Nelson-Phelpshypothesis 937, 1301 neoclassical models xx, 15, 307, 475, 494, 853, 1021, 1022, 1374

Neolithic period 275

network externalities 339, 349, 368, 1189 network formation 1659

Nevil Maskelyne 1158 new good externalities 819 NicolasAppert 1150 nitrogen oxide 1772 non-aggregative growth models 478, 505, 535 nonconvex growth 319, 353 nonrivalry 857, 1065, 1072, 1086 nonrivalry of ideas 1073, 1106 nontraded goods 1473, 1519, 1520 norms 302, 1644

North American Free Trade Agreement 1408 North-North trade 216

North-South trade 216

occupation-specific human-capital 1336 old age insurance 369

old-age security hypothesis 234 on-the-job training 1318 open knowledge 1121 open science 1132

openness to international trade 1032 opportunity cost of capital 510 opportunity cost of children 228 optimal allocation 1080 optimal scale 531, 1310 organization of education 102 organizational capital 1206, 1296, 1325 organizational structure 1321, 1598, 1613 outsourcing 1574

outward-orientation 973 own-account software 754

parental education 700 partial convergence 584 patents 69, 1082, 1105, 1165, 1166, 1186, 1198 Penn World Tables 685, 804

PhilippeLeBon 1128

physical capital 682, 818, 895, 901, 1019, 1393, 1394

PierreLouisGuinand 1127 Pierre-Simon de Laplace 1151 pivotal voter 1608

policy 69, 355, 868, 886, 1017, 1054, 1093, 1769

political factors xxi, 214, 389, 390, 423, 432, 868, 922, 923, 1599, 1600, 1606, 1609 politico-economic steady states 1599 pollution 1755, 1766, 1816 pollution abatement 1763, 1779 Post-MalthusianRegime 177, 186

poverty 537, 622, 920, 921, 986, 1017, 1021, 1146

pre-demographic transition era 235 precautionary demand for children 227 predation 394

preference for offspring’s quality 231 prescriptive knowledge 1122 price liberalization 979 price taking 314

primary electric motors 1187 printing press 1121 prisoner’s dilemma 1654 private good 1018 private property 422 private rate of return 845 product cycle 1576 product cycle trade 127 product-market competition 69, 718 production function 528, 768, 1280 productivity 87, 136, 217, 316, 475, 491, 500, 527, 747, 783, 890, 895, 901, 1184, 1186, 1203, 1204, 1227, 1295, 1346

property rights 15, 388, 508, 914, 973, 1032, 1818

propositional knowledge 1121, 1123 protectionism 1515, 1532-1534 prudential regulation 974 public education 194 public enterprises 975, 1001

public goods 1503, 1505, 1510-1512, 1531, 1538, 1648, 1649, 1703

quality of goods 67, 69, 714, 782, 791, 822, 1292

quantity-quality trade-off 231, 1239

R.J.

Ramsey-Cass-Koopmansmodel 587 Realschulen 1164

redistributive institutions 1597, 1614 redistributive policies 1359 Reform Act of 1884 215

Reform Acts of 1867 and 1884 214 regulations 508, 868, 869, 886, 922, 923, 1787,

1816

relative efficiency 1399 relative price of equipment 1196, 1298, 1308 relative prices 1027, 1713 relative wages of women 225 religion 194, 400, 923

Rene Reaumur 1124, 1139 rentiers 1705

rents 394 replacement level 191 replication argument 1066 reputation 367, 518 research and development 70, 120, 712, 818,

833, 841, 845, 854, 879 residual inequality 1361 RichardRoberts 1128,1159 RichardTrevithick 1139,1159 rise in the factory 1169 risk 157, 227, 355, 368, 513, 870, 876, 922 Robert continuous paper-making 1127 RoyalSociety 1135

SadiCarnot 1149 savings 520, 867, 901, 1380, 1704, 1719 scale effects 92, 124, 501, 837, 999, 1088,

1089, 1095, 1096, 1101, 1516-1518, 1530, 1531, 1538, 1752, 1757

schooling 197, 496, 682, 828, 954, 1227, 1713 Schumpeterian effect of product market competi­

tion 88

Schumpeterian growth paradigm 69 scientific management 1230 scientific revolution 270,1131 secession 1506, 1513, 1514, 1536, 1538 Second Industrial Revolution 178, 225, 1229 second-generation reforms 974

sector effects 47, 682, 1289, 1291, 1703, 1713, 1739

semi-endogenous growth theory 96 semiconductors 746, 747, 1291 shock therapy 989

Simon Newcomb 1153

size distribution of cities 1548

size of countries 1502, 1505, 1510, 1512, 1514,

1530

size of the public sector 1703

skills 134, 205, 229, 239, 257, 281, 1204, 1205, 1227, 1240, 1279, 1283, 1297, 1298, 1300, 1303, 1306-1308, 1310, 1311, 1314, 1315, 1321, 1327, 1329, 1334, 1338, 1344, 1349, 1354, 1361, 1597, 1598, 1613, 1616, 1620, 1703, 1705

Smithian growth 1116

social capital 402, 923, 1020, 1641

social contract 1597, 1609

social differentiation 1705

social exchange 1645

social institutions 1705

social insurance 1006, 1600, 1741

social interactions 1673

social learning 516

social mobility 1605

social networks 1644

social policy 986

social preferences 1007

social rate of return 838, 1087

social relations 1703

social safety nets 974

social structure 1659

socialist economic system 1050

Society of Arts 1142 sociopolitical stability 194

Solow model 17, 580

Solow regime 159

Solow residual 494, 681

Solowvariables 580

South Asia 307, 971

specialization 299, 349, 823, 881, 1504 spillovers 327

static efficiency 986

StatuteofArtificers 1168

steady states 578, 1018

steampower 1129, 1130, 1191 steelmaking 1130, 1132 stock markets 874, 877, 882, 886, 893-895, 912, 1206

stock of capital 198

stock of knowledge 1796

stock prices 1204

Stone-Geary preferences 1032

structural evolution 976, 1263, 1352, 1451, 1452, 1455, 1456, 1461, 1463, 1464, 1466, 1470, 1480

stylized facts 561, 1771

Sub-Saharan Africa 175, 304, 307, 971, 1703 subsistence level 179

sustainability 174, 997, 998, 1753, 1774 symmetry-breaking 362 systems of cities 1547, 1565

targeted anti-poverty programs 974 taxes 869, 979, 1018, 1019, 1380, 1603 Tayloristic organization 1311, 1321, 1324, 1330

teacher-pupil ratios 698 technical externalities 300 technical progress 1705, 1720 technique 1120,1752,1758 technische Hochschulen 1164 technology 77, 83, 140, 150, 174, 178, 190, 239, 339, 373, 478, 496, 499, 501, 516, 577, 818, 867, 871, 876, 937, 941, 1017, 1022, 1116, 1131, 1144, 1204, 1217, 1227, 1229, 1256, 1304, 1308, 1337, 1339, 1350, 1392, 1598, 1627, 1628, 1754, 1756, 1775 terms of trade 835

The Reform Act of 1832 214

theory of aggregate production function 1391 theory of relative efficiencies 1389 theory of TFP 1375,1390 theory open-endedness 639 thermodynamics 1149

Thomas Alva Edison 1153, 1184, 1250 ThomasJefferson 1069,1137 throstles 1129 tightness 1125, 1152 TobernBergman 1124 TobiasMayer 1158 total factor productivity 478, 499, 605, 607, 684, 767, 835, 940, 1289, 1291, 1375, 1379, 1380, 1382

trade 842, 974, 1001, 1050, 1106, 1186, 1204, 1218, 1307, 1504-1506, 1510, 1513, 1514, 1516, 1518, 1519, 1530, 1538, 1817 transitions 176, 332, 494, 980, 1026, 1073, 1374, 1375, 1549, 1775

TreatyofRome 1410

trust 1117,1643,1644,1646

twin-peaks 596

unemployment 696, 1279, 1288, 1328, 1331, 1340, 1345, 1347

unskilled labor 1229, 1705

urban growth 193, 408, 1546, 1554, 1560, 1561, 1581, 1706, 1712

vintage capital 1300, 1315, 1332, 1334, 1336, 1337, 1347, 1361

voluntary organizations 1648

wages 131, 142, 213, 232, 262, 686, 1158, 1279, 1281, 1327, 1328, 1340-1342, 1347, 1352, 1629

Wagner's law 1706

Washington Consensus 973, 1033

welfare states 1597, 1601

Western Offshoots 175, 186

WilburWright 1153

William Cruickshank 1151

William Cullen 1138

WilliamEllis 1137

William Murdoch 1159

WilliamNicholson 1140,1152

William Petty 1069

William Rankine 1139, 1150

William Thomson 1150

wind power 1129

women's liberation 1250

World Bank 1730

world technology frontier 836

World War II 1262, 1725

worldwide changes in patent policy 1199 Wright brothers 1153

wrought iron 1129

Zipf's Law 1548

²⁴ Lawrence Lau (2000) surveys applications of the cost of capital.

²⁵ See, for example, Jorgenson, Gollop, and Fraumeni (1987, pp. 40-49), and Jorgenson and Griliches (1967).

²⁶ Jorgenson and Stiroh (2000b, Table B4, pp. 196-197) give the depreciation rates employed in this section. Fraumeni (1997) describes depreciation rates used in the NIPA. Jorgenson (1996) surveys empirical studies of depreciation.

²⁷ See Jorgenson and Yun (2001) for details on the U.S. tax structure for capital income. Diewert and Denis Lawrence (2000) survey measures of the price and quantity of capital input.

deregulation. These were perceived to be the key elements of what Krugman (1995, p. 29) has called the “Victorian virtue in economic policy”, namely “free markets and sound money”. Towards the end of the 1990s, this list was augmented in the thinking of multilateral agencies and policy economists with a series of so-called second-generation reforms that were more institutional in nature and targeted at problems of “good gover­nance”. A complete inventory of these Washington Consensus-plus reforms would take too much space, and in any case the precise listing differs from source to source.⁴ I have shown a representative sample of ten items (to preserve the symmetry with the original Washington Consensus) in the right panel of Table 2. They range from anti-corruption and corporate governance to social safety nets and targeted anti-poverty programs.

The perceived need for second-generation reforms arose from a combination of sources. First, there was growing recognition that market-oriented policies may be in­adequate without more serious institutional transformation, in areas ranging from the bureaucracy to labor markets. For example, trade liberalization may not reallocate an economy’s resources appropriately if the labor markets are “rigid” or insufficiently “flexible”. Second, there was a concern that financial liberalization may lead to crises and excessive volatility in the absence of a more carefully delineated macroeconomic framework and improved prudential regulation.

It is probably fair to say that a listing along the lines of Table 2 captures in broad brushstrokes mainstream thinking about the key elements of a growth program circa

⁴ For diverse perspectives on what the list should contain, see Stiglitz (1998), World Bank (1998), Naim (1999), Birdsall and de la Torre (2001), Kaufmann (2002), Ocampo (2002), and Kuczynski and Williamson (2003).

²⁴ A similar distinction is also made by Ocampo (2003), who emphasizes that many of the long-run correlates of growth (such as improved institutions) are the result, and not the instigator, of growth. There is also an analogue in the political science literature in the distinction between the political prerequisites of initiating and sustaining reform [see Haggard and Kaufman (1983)].