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Daron Acemoglu , Simon Johnson , and James Robinson won the Nobel Prize in Economics this week .
Andrew Keen : While their theories are elegant, the data underlying them are shaky at best.
Keen: There’s a lot of appealing about the finding about the colonization changes wrought by European colonization is shaky.
Keen says the need to subject findings like theirs to further testing.
The theory is a hopeful one: While countries cannot change their geographies, they can adopt new, better institutions.
But do the specific empirical claims AJR made hold up? It doesn't seem like it. Economist David Albouy offers the most persuasive reply to their 2001 “Colonial Origins” paper by digging into the actual data.
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