Economic and Political Inequality in Development: The Case of Cundinamarca, Colombia

Colonial Institutions, Slavery, Inequality, and Development: Evidence from São Paulo, Brazil

“…Nunn (2008), by way of contrast, found no significant relationship between early land inequality and long-term economic performance in the US at either the state or county level. Acemoglu, et al (2008) similarly did not find a negative relationship between nineteenth-century land inequality, and either income or education, in Cundinamarca province in Colombia. If inequality in São Paulo undermined development, it should be apparent in its effects on later income and related development indicators.…”

“…Frankema (2009) argues for a mix of institutional and factor endowments in accounting for patterns of inequality across countries. Ramcharan (2009);Galor, Moav, and Vollrath (2009);and Acemoglu, et al (2008) all found a negative relationship between nineteenth-century land inequality and human capital formation (or educational expenditures) within the United States. Nunn (2008), by way of contrast, found no significant relationship between early land inequality and long-term economic performance in the US at either the state or county level.…”

“…Studies that look at within-country variation of inequality arrive at a variety of findings. Ramchuran (2009) found that farm inequality in the late nineteenth-century U.S. was an important determinant of redistributive transfers, including expenditures on education, as did Galor, Moav, and Vollrath (2009), and Acemoglu, et al (2008). Nunn (2008) found that the share of the population comprised by slaves in the United State in 1860 was correlated with income in 2000, but that land inequality in 1860 was not.…”

“…Nunn (2008) found that the share of the population comprised by slaves in the United State in 1860 was correlated with income in 2000, but that land inequality in 1860 was not. Acemoglu, et al (2008) determined that there was little role for nineteenthcentury land inequality in Colombia in explaining long-term economic outcomes, but that political inequality was a distinct cause of lower levels of development. Most recently, Wegenast (2010), compares educational outcomes across Brazilian states, arguing for a central role for endowments, crop choices and agricultural inequality in explaining lower levels of education.…”

Productivity Differences Between and Within Countries

“…Outside of Latin America, Abhijit Banerjee and Lakshmi Iyer (2005) similarly show that colonial land revenue systems in India have long-run effects on investments in health and education infrastructure. Daron Acemoglu et al (2008) find a robust association between political inequality in the 19th century in Cundinamarca, Colombia (measured by the lack of turnover of mayors in the municipalities) and economic outcomes today. They also provide evidence, consistent with Dell's (2008) findings, that the availability of local public goods might be a particularly important intervening channel.…”