Exceptional Argentina Di Tella, Glaeser and Llach - Thomas Piketty

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Figure 2. Educational attainment and per capita GDP 120 Primary school attendance, circa 1930 100 80 60 40 20 YUG ICEBUL MEX CR JAPGRE POL IRE SWE SPA NOR AUTGER CZE ARG ITA CHL HUN FIN FRA CANZ BEL DEN AUL NET UK PHL TW THA BRA GUA CHN R 2 = 0,8061 SWI USA 0 0 1000 2000 3000 4000 5000 6000 7000 8000 Per capita GDP, 1929 Figure 3. Life expectancy and per capita GDP 70 Life expectancy, circa 1930 65 60 55 50 45 40 35 30 NOR SWE GER IRE FIN AUT ITA CZE ARG ICE SPA POL GRE HUN YUG JAP TW BUL GUA CHL PHL THA MEX CR BRA NZ AULNET DEN CAN UK BEL FRA SWI USA 25 CHN R 2 = 0,6887 20 0 1000 2000 3000 4000 5000 6000 7000 8000 Per capita GDP, 1929 Education and health data for the late 1920s can be combined to build a primitive form of the Human Development Index (HDI). Recall the HDI weighs, with 1/3 each, educational, health and income variables. Each dimension varies between 0 and 1. In the case of income, the formula involves logarithms to reflect the declining marginal utility of income. The educational variable is itself a composite of literacy (2/3) and enrollment (1/3). In Figure 5 I present the HDI for 1930 using primary enrollment as the sole educational variable, as literacy rates are sketchier (although Crafts (1997) did use literacy rates for his compilation of historical HDI's). Argentina ranks #17 in this modified HDI ranking. Its higher income hardly compensates for its lower readings in health and education.
Figure 4. A modified Human Development Index for 1930 0,80 0,70 0,60 0,50 0,40 0,30 0,20 0,10 0,00 AUL CAN USA NET SWE UK SWI IRE FRA NOR DEN BEL GER AUT SPA CZE ARG ITA FIN GRE POL JAP HUN CHL YUG BUL CR MEX PHL TW THA BRA GUA CHN IND As for physical capital, an accurate comparison is probably impossible. To my knowledge we lack international, comparable estimates of physical capital for the years just before the Depression. Colin Clark (1940) does present figures for several countries for the years around 1914. With 4816 "international units" of capital in 1916, Argentina stood fourth after Britain (6710 in 1913), the U.S. (5060 in 1919) and Canada (5500, though in 1929), slightly ahead of Germany (4750), France (4290) and Australia (4005) and clearly surpassed Belgium (2360), all countries richer than or as rich as Argentina right before the Great War 9 . These estimates, however, should not be taken at face value as they were collected by Clark from secondary sources using diverse methods and not correcting for international price differentials. For 1934-1938, the capital items in the rankings drawn by Bennett (1951) placed Argentina sixth out of 31 countries in railway energy consumption per capita (after the Western Offshoots, Germany and the UK) and seventh (trailing the former plus France) in telephones per capita. Also, Argentina was in 1930 fifth in the world in automobiles per person, lagging only the Western Offshoots. 10 Another significant dimension of Argentina's wealth is distribution. We lack, in general, pre- Depression estimates of personal income distribution, but indicators of distribution across factors of production can be built combining Maddison's GDP data with Williamson wage series. If the US wage-GDPpc ratio is 100 for 1925-1929, Argentina's stands at 95. This is lower than in Canada, Australia and the Scandinavian countries, but higher than all other European countries in Williamson's (1995) dataset except (somewhat surprisingly) Ireland (Figure 6). Workers in Argentina were enjoying the benefits of general prosperity, probably more so than in an average European country. The picture of Argentina's golden age as an 9 Clark has no data for that year for the Netherlands, Denmark, Switzerland and New Zealand, ahead of Argentina in per capita GDP. 10 Anuario Geográfico Argentino (1941), 466.
Page 1 and 2: Exceptional Argentina Di Tella, Gla
Page 3 and 4: A third explanation of Argentina’
Page 5 and 6: Maddison's "Western Offshoots" by l
Page 7 and 8: A final point on this mechanistic a
Page 9 and 10: GDP in 1900 at 12,100 (in constant
Page 11 and 12: nationalized railways and banks, to
Page 13 and 14: country interacted with initial con
Page 15 and 16: 1900. As there is an extremely stro
Page 17 and 18: Between the 1940s and 1970s income
Page 19 and 20: particularly in terms of food consu
Page 21 and 22: Even before the 2001 crisis, Argent
Page 23: Scandinavia and Northern Europe the
Page 27 and 28: Figure 6. Per capita GDP across Arg
Page 29 and 30: production 15 . Moreover, beyond st
Page 31 and 32: Figure 10. Average weight of export
Page 33 and 34: etween the prewar export-led growth
Page 35 and 36: which was wholly bound to local dem
Page 37 and 38: protectionism", certainly stronger
Page 39 and 40: agricultural pastures and cropland
Page 41 and 42: far. Argentina's differential popul
Page 43 and 44: Appendix Figure A. 1. Argentina's r
Page 45 and 46: Peru 35 38 25 34 34 34 32 29 26 27
Page 47 and 48: Like the Llach paper, the Campante
Page 49 and 50: I. Introduction Both Buenos Aires a
Page 51 and 52: across the ocean. Over the course o
Page 53 and 54: Buenos Aires’ hinterland rose dra
Page 55 and 56: significantly greater education lev
Page 57 and 58: Why is there such a difference in l
Page 59 and 60: illion dollars today). Each Chicago
Page 61 and 62: Chicago also appears to have been a
Page 63 and 64: casualties. Roca secured the presid
Page 65 and 66: capital to St. Petersburg he was pr
Page 67 and 68: and the logarithm of per capita GDP
Page 69 and 70: Moreover, years of schooling today
Page 71 and 72: y its overwhelming political import
Page 73 and 74: 200 Figure 2a: Annual Wage Data 187
Page 75 and 76:
Figure 3: Real Monthly Wages in Chi
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Log GDP per capita 2000 5 6 7 8 9 1
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Figure 7 Log GDP per capita 2000 7
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Table 2: Top 5 Industries in Chicag
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Table 4: 19th Century Variables and
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A simple calculation suggests that
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toy model with a minimum of paramet
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were lifted, but import taxes remai
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to compute that the MPK term above
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versus foreigners, on most occasion
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X institutions policies income p
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series variation. The coincidence o
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Figure 1—The Great Divergence and
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Figure 3—Trade taxes
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Transition Remarks The previous ess
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CHAPTER FOUR Argentine Trade Polici
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Argentine comparative advantage lie
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thousands of product lines in Argen
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Japan). Third, the agricultural pro
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different preferences over trade pr
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two nomenclatures had to be manuall
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esult, soybeans were finally adopte
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Figure 1 Trade Openness Exports + I
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Figure 5 Relative Sectoral Protecti
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Figure 7 Average Export Taxes 0 10
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Figure 9 Average Export Taxes at 2-
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Figure 11 Evolution of Argentine Ag
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Figure 13 Yields in Agriculture: Wh
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Table 2 Livestock per Capita 1895 C
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Table 5 Mean Share of Exports (Impo
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Table 7 Tariff Statistics for perio
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Table 9 Evolution of Industrial Pro
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CHAPTER FIVE Path-Dependent Import-
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actors, and they were demanding pro
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the primary sector, using land and
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Figure 1: The Long Run: Four Region
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Finally, in the reversal of pattern
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Figure 3: Medium Run Preferences ov
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sector to give rise to a protection
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technological improvements or incre
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Argentina did relatively well when
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World War, a second globalization e
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Argentine primary sector and ensure
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Clearly, world market conditions we
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for the years to come. The most imp
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governments zigzagged in their poli
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public spending on infrastructure s
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understand the rise of the urban-ru
Page 171 and 172:
To sum up, by the beginning of the
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has a comparative advantage in the
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L λ = m L K κ = m K That is, λ i
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K c a = 1− α 1−α T A ( κ )
Page 179 and 180:
Given a set of parameters ϒ , φ a
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consumption of good i. For any agen
Page 183 and 184:
Proposition 3 In the short run, pro
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ρ 1/ 1 ρ ρ 1 ( ξ ξ ) 1 TT K ,
Page 187 and 188:
Up to 2008, the FPV government had
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negative correlation between the pr
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policies would, supposedly, eviscer
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I. Introduction In a seminal study,
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terms, Peronist beliefs in the 1990
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Several authors have emphasized the
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foreign capital and trade as the gl
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of already available information. A
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having the need to do more than wak
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Argentines (who implement these pol
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opinion about elements of capitalis
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intense (the proportion is under 1.
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involved in social ordering that wi
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cost of the deviating firm, since w
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Admissible Region Bounds on w b Nex
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The previous proposition may be par
Page 219 and 220:
and note that Peron insists on the
Page 221 and 222:
Appendix 2: Definitions of Variable
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Table II: The Beliefs of Peronists
Page 225 and 226:
Transition Remarks The previous cha
Page 227 and 228:
CHAPTER SEVEN A Short Episodic Hist
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the income distribution between 193
Page 231 and 232:
empirical evidence and on existing
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of commodities. The country was off
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accounts increased by 8% between 19
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Argentina in 1942 (4.1%) is not ver
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This change in inequality is also r
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1982, when Mexico’s default on it
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1995. While growth bounced back qui
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The main characteristics of this ep
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skilled workers that more than offs
Page 249 and 250:
Household Expenditure Survey. An in
Page 251 and 252:
The relationship between internatio
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machinery and equipment can acceler
Page 255 and 256:
occurred not only in production tec
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a relative abundance of rents to sh
Page 259 and 260:
even when the number of well-off in
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and similar patterns emerge when co
Page 263 and 264:
This chapter described the level an
Page 265 and 266:
Transition Remarks Economic success
Page 267 and 268:
CHAPTER EIGHT Why do Argentines tru
Page 269 and 270:
in the 1970s and 1980s. Despite the
Page 271 and 272:
Figure 5. Percentage of the populat
Page 273 and 274:
analysis of the Argentinean and Chi
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observationally equivalent individu
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the low rank policeman. 13 4. The C
Page 279 and 280:
Figure 7. Share of people having a
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6. Why did the Argentinean Police d
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instability, σ, a worried leader h
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the deeper question of why the Arge
Page 287 and 288:
Table 2. Comparative facts for cano
Page 289 and 290:
of formal education, whereas in the
Page 291 and 292:
only bargaining tool to get money.
Page 293 and 294:
Table 6. Tierra del Fuego Subinspec
Page 295 and 296:
4. Police deaths during the 20th ce
Page 297 and 298:
Of course, these conclusions depend
Page 299 and 300:
“stop go” dynamics 4 ). In fact
Page 301 and 302:
income distribution and earnings gr
Page 303 and 304:
Figure 2. Basic Statistics Food Clo
Page 305 and 306:
Table 2 Dep. Var.: Share of food Sm
Page 307 and 308:
Figure 3. Variety in food retailing
Page 309 and 310:
Table 3 Dep. Var.: Share of food at
Page 311 and 312:
3.3 Income distribution effects The
Page 313 and 314:
Figure 6. Individual Effects Using
Page 315 and 316:
Expenditure Income 5000 6000 4000 4
Page 317 and 318:
Figure 10. Income distribution Dens
Page 319 and 320:
Appendix A: Estimation strategy Est
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w ijt where [ ln( 1+ ∏ ) − ln(
Page 323 and 324:
2.2 Income distribution effects Fol
Page 325 and 326:
Appendix B: The data To run our est
Page 327 and 328:
Appendix C: Additional tables C1: B
Page 329 and 330:
C3: Table 3 coefficients Dummy for
Page 331 and 332:
CONCLUSION 20 th century Argentina
Page 333 and 334:
can be harbingers of worse things t
Page 335 and 336:
Ahumada, Hildegart, Alfredo Canaves
Page 337 and 338:
Barro, Robert J. 2005. “Rare Even
Page 339 and 340:
Burzaco, Eugenio et al. 2004. “Ma
Page 341 and 342:
Cortés Conde, Roberto and María M
Page 343 and 344:
Di Tella, Rafael, Juan Dubra and Ro
Page 345 and 346:
Gaggero, Horacio and Alicia Garro.
Page 347 and 348:
Gerchunoff, Pablo, Fernando Rocchi
Page 349 and 350:
James, Daniel. 1988. “October 17
Page 351 and 352:
Maddison, Angus. 2006. The World Ec
Page 353 and 354:
Piketty, T. 2003. “Income Inequal
Page 355 and 356:
Spiller, Pablo and Mariano Tommasi.
Page 357:
Williamson, Jeffrey G. 1995. “The
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Exceptional Argentina Di Tella, Glaeser and Llach - Thomas Piketty

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