Greg Rosalski

Yeah, the era of European colonization. When starting in the 1400s, a bunch of Western powers went around the world, invading and imposing different kinds of institutions, institutions that the economists believed had lasting economic consequences.

But there were also different patterns in how this all unfolded in different places, which seemed to create the conditions for the natural experiment that the economists were looking for.

But there were also different patterns in how this all unfolded in different places, which seemed to create the conditions for the natural experiment that the economists were looking for.

But there were also different patterns in how this all unfolded in different places, which seemed to create the conditions for the natural experiment that the economists were looking for.

At the other extreme were colonies where Europeans did not settle in large numbers, places like the Congo or Bolivia. There, European colonizers set up or maintained institutions aimed at helping a small group of elites ruthlessly extract wealth from indigenous people. Instead of investing there, they sent most of their resources and wealth back to Europe.

At the other extreme were colonies where Europeans did not settle in large numbers, places like the Congo or Bolivia. There, European colonizers set up or maintained institutions aimed at helping a small group of elites ruthlessly extract wealth from indigenous people. Instead of investing there, they sent most of their resources and wealth back to Europe.

At the other extreme were colonies where Europeans did not settle in large numbers, places like the Congo or Bolivia. There, European colonizers set up or maintained institutions aimed at helping a small group of elites ruthlessly extract wealth from indigenous people. Instead of investing there, they sent most of their resources and wealth back to Europe.

These are the places that tended to become poorer countries.

These are the places that tended to become poorer countries.

These are the places that tended to become poorer countries.

So the economists began searching for some kind of random factor unrelated to a country's potential for economic growth that affected which places got settler colonies.

So the economists began searching for some kind of random factor unrelated to a country's potential for economic growth that affected which places got settler colonies.

So the economists began searching for some kind of random factor unrelated to a country's potential for economic growth that affected which places got settler colonies.

Then the economists had their big breakthrough. they found a kind of random reason why Europeans put settler colonies in some places and not others. Disease.

Then the economists had their big breakthrough. they found a kind of random reason why Europeans put settler colonies in some places and not others. Disease.

Then the economists had their big breakthrough. they found a kind of random reason why Europeans put settler colonies in some places and not others. Disease.

The economists go searching for data so they can conduct a statistical analysis of all this. They find it in a set of books by historian Philip Curtin. He had meticulously compiled records on how many Europeans died from diseases in colonies around the world.

The economists go searching for data so they can conduct a statistical analysis of all this. They find it in a set of books by historian Philip Curtin. He had meticulously compiled records on how many Europeans died from diseases in colonies around the world.

The economists go searching for data so they can conduct a statistical analysis of all this. They find it in a set of books by historian Philip Curtin. He had meticulously compiled records on how many Europeans died from diseases in colonies around the world.

That's because the way they saw it, the death rates of colonizers was this kind of random independent factor determining which places got growth-friendly institutions and which places did not. This was the natural experiment the economists were looking for.