Explain how these facts could alternatively be interpreted

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Question: Consider two descriptive facts. First, the poorest countries in the world are disproportionately located close to the equator. Second, the civilizations that were richest in 1500 are among the poorest societies at present.

a. Based on Acemoglu et al. (2006), Sachs (2012) and class lectures, explain how these facts could alternatively be interpreted as consistent with the central role of institutions or with the central role of geography in explaining patterns of economic development.

b. Does the natural experiment based on settler mortality (studied in Acemoglu, Johnson, and Robinson, 2001) resolve this debate? Why or why not?

Reference no: EM133401861

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