CAPITALISM AND DEMOCRACY: AFFLUENCE, INEQUALITY, AND THE ENVIRONMENT - Capitalism and growth: cause and effect?

3 important questions on CAPITALISM AND DEMOCRACY: AFFLUENCE, INEQUALITY, AND THE ENVIRONMENT - Capitalism and growth: cause and effect?

What two groups can we identify in a natural experiment?

A ‘treatment’ group: This group undergoes a change. Other attributes of the group remain constant.


A ‘control’ group: This group was similar to the treatment group before the experiment, and the treatment does not occur in this group.

What was central planning?

Decisions about what to produce, and how much, are not made by private individuals, but by government officials

Why is the outcome of 1.14 not completely reliable?

Because it has been influenced by a lot of other external factors

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