Discussion paper

DP15775 From Micro to Macro Development

Macroeconomic development remains an important policy goal because of its ability to lift entire
populations out of poverty. In our review of the literature, we emphasize that the best way to
achieve this objective is to embrace a synthesis of methods and ideas, with the science of
experiments as a unifying feature. RCTs need representative data and structural modeling, and
macro models need to be designed and disciplined to the realities and data of developing country
economies. Macroeconomic models have key lessons for gathering and analyzing micro evidence
and for moving to an evaluation of macro policy. Resource constraints, heterogeneity, general
equilibrium effects, obstacles to trade, dynamics, and returns to scale can all play key roles. A
synthesis for macro development is well under way.


Buera, F, J Kaboski and R Townsend (2022), ‘DP15775 From Micro to Macro Development‘, CEPR Discussion Paper No. 15775. CEPR Press, Paris & London. https://cepr.org/publications/dp15775