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Theory, General Equilibrium, Political Economy and Empirics in Development Economics  
Author(s):  Daron Acemoglu  
Abstract:
I discuss the role of economic theory in empirical work in development economics with special emphasis on general equilibrium and political economy considerations. I argue that economic theory plays (should play) a central role in formulating models, estimates of which can be used for counterfactual and policy analysis. I emphasize why relying solely on “instruments” for this type o...
 
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In the Spotlight
Prof. Masood Karshenas
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Prof. Masood Karshenas
Dr. Massoud Karshenas is Professor of Economics at the University of London. He is also a Fellow of the Economic Research Forum for Arab Countries, Turkey and Iran (ERF). His research interests include, political economy of the Middle East, poverty and environment in Least Developed Countries, economics of technological change, and intersectoral resource flows.   His publications inc...
 
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Editorial and Opinion
Djavad Salehi-Isfahani
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The tale of two professions
Author(s): Djavad Salehi-Isfahani
Position: Professor of Economics at Virginia Tech
October 1851, when Darolfonoon opened its doors to its first class of medical students, is as good a date as any to mark the beginning of the successful diffusion of modern medicine in Iran. Over the next hundred years, ordinary Iranians replaced their faith in healers with doctors and abandoned folk for modern medicine. Thus Iranians pa...
 
Classic Papers in Economics
Effciency and Equality in a Simple Model of Unemployment Insurance  
Author(s):  Andrew Atkeson, Robert E. Lucas, Jr.  
Abstract:
This paper describes the efficient allocation of consumption and work effort in an economy in which workers face idiosyncratic employment risk and considerations of moral hazard prevent full insurance. We impose a lower bound on the expected discounted utility that can be assigned to any agent from any date onward, and show, with this feature added, that the efficient unemployment insurance schem...
 
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Understanding the Process of Economic Change
 
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