Disagreement and Learning about Reforms
Journal
The Economic Journal
ISSN
00130133
Type
journal article
Date Issued
2015
Author(s)
Abstract
When it comes to economic reforms in developing countries, many economists agree on broad objectives. Broad objectives, however, can be pursued in different ways, and policy experimentation is often indispensable for learning which alternative works locally. We propose a theoretical model to study this societal learning process. The model explores the role of disagreeing beliefs about ‘what works’. It suggests that such disagreement can stall the societal learning process and cause economic stagnation although everyone knows that growth‐promoting reforms do exist. Our analysis is motivated by the observation of a negative relationship between disagreement and economic growth among poorer countries.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
None
Refereed
Yes
Volume
125
Number
584
Start page
853
End page
886
Official URL
Subject(s)
Contact Email Address
johannes.binswanger@unisg.ch
Eprints ID
255451