Sunday, July 19, 2009

Its All About the Potato

From Paul Kedrosky's blog:
There is a fascinating new NBER paper out making the case for the humble potato as disruptive innovation:

We have estimated the effect of the introduction of the potato on Old World population growth and urbanization. The nutritional and caloric superiority of the potato, and its diffusion from the New World to the Old, allows us to estimate causal effects using a difference-in-differences estimation strategy. According to our most conservative estimates, the introduction of the potato explains 22% of the observed post-1700 increase in population growth. These results show that food and nutrition matter. By increasing the nutritional carrying capacity of land they can have large effects on population.

To the extent that urbanization serves as a measure of the shift from rural agriculture to urban manufacturing, our estimates also provide historic evidence of the importance of agricultural productivity for economic development. According to our estimates, the introduction of the potato explains 47% of the post-1700 increase in the average urbanization rate. Our estimates suggest that increased agricultural productivity can play a significant part in promoting the rise of urban centers, industry, and economic development."

TW: And something tells me that decades (maybe centuries) from now someone will do a story on how the potato's morph into the french fried version had even greater implications (e.g. why by 2100 the average weight of an American approached 300 lbs etc.).

1 comment:

Amy Ponce! said...

Very interesting potato theory this guy has.

The obvious culprits for American obesity are not fries, but corn, and the industry that feeds it into our factory-farmed food chain and makes it into sugar, and the government that, regardless of party, has made this industry possible through subsidizing.

OH how I hate Big Corn!

Give us back potatos any day.