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From Micro to Macro Development

Author

Listed:
  • Francisco J. Buera
  • Joseph P. Kaboski
  • Robert M. Townsend
Abstract
Macroeconomic development remains an important policy goal because of its ability to lift entire populations out of poverty. In our review of the literature, we emphasize that the best way to achieve this objective is to embrace a synthesis of methods and ideas, with the science of experiments as a unifying feature. Randomized controlled trials need representative data and structural modeling, and macro models need to be designed and disciplined to the realities and data of developing-country economies. Macroeconomic models have key lessons for gathering and analyzing micro evidence and for moving to an evaluation of macro policy. Resource constraints, heterogeneity, general equilibrium effects, obstacles to trade, dynamics, and returns to scale can all play key roles. A synthesis for macro development is well under way.

Suggested Citation

  • Francisco J. Buera & Joseph P. Kaboski & Robert M. Townsend, 2023. "From Micro to Macro Development," Journal of Economic Literature, American Economic Association, vol. 61(2), pages 471-503, June.
    • Handle: RePEc:aea:jeclit:v:61:y:2023:i:2:p:471-503
    DOI: 10.1257/jel.20211537
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    Cited by:

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    2. Oriana Bandiera & Robin Burgess & Erika Deserranno & Ricardo Morel & Imran Rasul & Munshi Sulaiman & Jack Thiemel, 2022. "Microfinance and Diversification," Economica, London School of Economics and Political Science, vol. 89(S1), pages 239-275, June.
    3. Yujing Xiang & Qinli Zhang & Daolin Wang & Shihai Wu, 2022. "Mining Investment Risk Assessment for Nations along the Belt and Road Initiative," Land, MDPI, vol. 11(8), pages 1-20, August.
    4. Diane Coyle, 2021. "The idea of productivity," Working Papers 003, The Productivity Institute.
    5. Michał Gradzewicz, 2022. "How do firms respond to demand and supply shocks?," KAE Working Papers 2022-075, Warsaw School of Economics, Collegium of Economic Analysis.
    6. Ma, Xiao & Muendler, Marc-Andreas & Nakab, Alejandro, 2020. "Learning by Exporting and Wage Profiles: New Evidence from Brazil," MPRA Paper 109497, University Library of Munich, Germany, revised 31 Aug 2021.
    7. Ma, Xiao & Zhang, Yiran, 2023. "How do Multinational Firms Impact China’s Technology? The Role of Quid Pro Quo Policy and Technology Spillovers," MPRA Paper 119371, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D00 - Microeconomics - - General - - - General
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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