From Micro to Macro Development

Francisco J. Buera, Joseph Kaboski and Robert M. Townsend

Journal of Economic Literature, 2023, vol. 61, issue 2, 471-503

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.

JEL-codes: C93 D00 E00 O10 O11 O12 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Working Paper: From Micro to Macro Development (2022)
Working Paper: From Micro to Macro Development (2021)
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DOI: 10.1257/jel.20211537

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