Off to London

I am heading to the LSE for a conference on Freedom and Economic Development.  Other presenters include Joseph Stiglitz, Andrei Shleifer, Daron Acemoglu, Anne Krueger, Robin Burgess and Tim Besley.  Pete Leeson and I are delivering a paper titled "Two Tiered Entrepreneurship and Economic Development" and the basic point made in the paper is that there is positive relationship between entrepreneurship and economic development provided the rules of the game are such that they encourage productive entrepreneurship (arbitrage and innovation), but there is also entrepreneurship over the rules of the game to minimize the opportunities for predation by private and public actors.  The form of entrepreneurship over the rules governing social interaction has been overlooked to a considerable degree --- especially the private mechanisms of enforcement in underdeveloped economies that emerge in the small-scale trading behavior of individuals.  The paper by Pete and I build on the great work of P.T. Bauer, who is being honored at this meeting.

 

Comments

[Pablo H.]

Sounds interesting. Is there a site with the papers being presented? Let us know how it goes.

[David Rossie]

Is this open to students in the area?

[Rafe Champion]

Quite by chance I am debating these issues on some local blogs. This is the piece that kicked off. It is a challenge to the development field to take on board Bauer's critique.
http://badanalysis.com/catallaxy/?p=1773

After an exchange in the comments there is a more substantial rejoinder here.

http://www.clubtroppo.com.au/2006/05/22/the-road-to-genocide/

Feel free to drop in and have a say!

[Rafe Champion]

A comment on the Peter and Pete paper. It often helps to think of the liberal order resting on (at least) the three pillars of (1) free markets, (2) rule of law (including property rights) and (3) a moral framework including elements like honesty, compassion, enterprise, community service etc. Would it help to regard the moral framework among the private mechanisms of enforcement that support entreprenneurship.

I know that most of us find it hard to speak up about morals because the whole field has a bad record, as noted in this piece on the "staircase of opportunity" for progress in our Aborigial communities.
http://badanalysis.com/catallaxy/?p=1280