Property Rights and Economic Growth

My main purpose is to connect the issue of property rights to the set of questions concerning economic growth and the long-term determinants of the improvements in material well-being. To anticipate what will be my main conclusion, it is that property rights and economic growth are not separable. But that statement, by itself, is not very interesting. What is important is not my eventual conclusion but how I come to arrive at that conclusion. And I should warn you in advance that I will arrive at that conclusion via an unconventional pathway, and that our guide along that pathway - at least our initial guide - will be Karl Marx.economic growth; property rights; entrepreneurship; institutions

A General Purpose Technology at Work: The Corliss Steam Engine in the late 19th Century US

The steam engine is widely regarded as the icon of the Industrial Revolution and a prime example of a 'General Purpose Technology,' and yet its contribution to growth is far from transparent. This paper examines the role that a particular innovative design in steam power, the Corliss engine, played in the intertwined processes of industrialization and urbanization that characterized the growth of the US economy in the late 19th century. Waterpower offered abundant and cheap energy, but restricted the location of manufacturing just to areas with propitious topography and climate. Steam engines offered the possibility of relaxing this severe constraint, allowing industry to locate where key considerations such as access to markets for inputs and outputs directed. The enhanced performance of the Corliss engine as well as its fuel efficiency helped tip the balance in favor of steam in the fierce contest with waterpower. With the aid of detailed data on the location of Corliss engines and waterwheels and a two-stage estimation strategy, we show that the deployment of Corliss engines indeed served as a catalyst for the massive relocation of industry away from rural areas and into large urban centers, thus fueling agglomeration economies, and attracting further population growth. This illustrates what we believe is an important aspect of the dynamics of GPTs, whether it is electricity in the early 20th century or Information Technologies in the present era: the fact that GPTs induce the widespread and more efficient relocation of economic activity, which in turn fosters long-term growth.

Designing Efficient Institutions for Science-Based Entrepreneurship: Lessons from the US and Sweden

The recent ‘scientification’ of commercial technology has brought the interface between universities and industry into sharp focus. In particular, academic entrepreneurship, i.e., the variety of ways in which academics take direct part in the commercialization of research, is widely discussed. The purpose of this paper is to suggest a framework for identifying the strategic individual decisions involved when educational choice is translated into science-based entrepreneurship. Identifying these decisions also allows us to hypothesize what incentive structures should be crucial. Our suggested framework is informally tested by an in-depth examination of the experiences of Sweden and the US. Despite large levels of R&D spending and comprehensive government support schemes, science-based entrepre-neurship has been far less important in Sweden compared to the US. Our analysis points to weaknesses in the Swedish incentive structure in key respects: the rate of return to human capital investment, incentives to become an entrepreneur and to expand existing businesses, and insufficient incentives within the university system to adjust curricula and research budgets to outside demand. Several policy measures during the 1990s have reduced the weaknesses in the Swedish incentive structure. The current emergence of a more vibrant entrepreneurial culture in Sweden in some areas is consistent with these changes. Our analysis suggests that a policy aimed at encouraging science-based entrepreneurship should focus on strengthening individual incentives for human capital investment and entrepreneurial behavior both within universities and in business.Academic entrepreneurship; Innovation; R&D; Spin-off firms; Technology transfer; University-industry relations; Universities and business formation

The Butz Stops Here: Why the Food Movement Needs to Rethink Agricultural History

From the 1890s to the 1930s, rural Americans played a vital role in radical leftist politics. While specialists know this history well, the public tends to know a folk history, written by figures associated with contemporary food movements. This folk history rests on several key myths, which cover different periods of modern history from the New Deal to the present. This essay challenges these myths to reveal the causes and extent of the suffering endured by rural families in the 20th century, which in turn, decimated the populist left. A reconsideration of the history of agricultural policy will help food-system reformers develop a more radical and effective vision for rural Americ

Demand vs. Supply Driven Innovations: US and Swedish Experiences in Academic Entrepreneurship

Measured by per-capita publication measures, Sweden is an academic powerhouse. Hence, its inability to commercialize on these accomplishments is a puzzle. This paper attributes this failure to the top-down nature of Swedish policies aimed at commercializing these innovations as well as an academic environment that discourages academics from actively participating in the commercialization of their ideas. This sits in stark contrast to the US institutional setting that is characterized by competition between universities for research funds and research personnel, which in turn has led to significant academic freedoms to interact with industry, particularly by founding new firms. We conclude that the technocratic, supply-driven nature of attempts to exploit academic output in Sweden has been markedly less successful than the demand-driven market institutions in the US.Academic entrepreneurship; Innovation; R&D; Spin-off firms; Technology transfer; University-industry relations; Universities and business formation

Expanding Farm to School in Mississippi: Analysis and Recommendations

"Farm to school" refers to any program that connects K-12 schools with local farmers. "Farm to cafeteria" and "farm to institution" are terms sometimes used for programs that include farm to school components, but might also focus on bringing local produce to other local institutions. Most farm to school efforts concentrate on what is called "farm direct" purchasing, where schools buy products directly from local farmers to serve in the school cafeteria. The business partnerships that develop through farm direct programs often lead to educational activities, with farmers and schools working together to teach students about nutrition, agriculture, the environment, and other subjects. Not all farm to school programs involve farm direct purchasing; food distributors that supply schools can also participate by purchasing locally grown products and making them available to school purchasing officers.Why Farm to School?Farm to school has been shown to have enormous benefits in the areas of local economic development, children's health, and educational outcomes.Farm to SchoolStrengthens local economies, improves livelihood of local farmers, and spurs additional spending on other local products and services.Increases the amount of fruits and vegetables consumed by students in the cafeteria, classroom, and at home.Is an effective way to enhance nutrition education and health literacy

A Farm Bill to Help Farmers Weather Climate Change

The Farm Bill has an enormous impact on climate change. Greenhouse gas emissions from agriculture account for almost 10 percent of total U.S. emissions and up to a quarter of all emissions globally. The Farm Bill encourages the use of carbon-intensive agricultural practices and products responsible for these emissions, but nonetheless offers several opportunities to quickly expand carbon sequestration, making it a critical piece of climate legislation. This essay will examine the climate impact of the Farm Bill, focusing on the commodity, conservation, and crop insurance programs. It then proposes politically feasible changes to these programs aimed at minimizing agricultural greenhouse gas emissions and maximizing carbon storage. The essay concludes with an ambitious, long-term set of Farm Bill proposals designed to transform the U.S. agricultural sector into a carbon sink