In this talk, Richard Hornbeck explored how economies grow and adapt by drawing lessons from the historical development of the American economy. Much of economics is concerned with why some places are poor and some are rich, which is closely related to why some places became rich and some remained poor. His research uses particular historical episodes to better understand issues related to this central theme within economics, as history often provides unique opportunities to understand economic adaptation and growth.
Hornbeck touched on some common themes: how enforcement of property rights encourages growth and transaction costs constrain growth; the magnitude of productivity spillovers across firms and their impacts on workers; impacts of market integration; how the economy adapts to a changing environment; and general adaptation to labor or capital scarcity. In addressing these topics, he considered how economic behavior and the natural environment combine to shape economic outcomes.