Sources of Minnesota's growth since World War II

1. How Can Minnesota Stay Above Average? Louis D. Johnston Presentation at the Minnesota Renewable Energy Roundtable Action Team Leadership Retreat January 10, 2011

2. Nobel Laureate, 1976

3. Nobel Laureate, 1982

4. Close friends

5. ''Milton's out to save the world and I'm out to understand it.'' George Stigler NY Times, October 21, 1982

6. Quick overview: Economic growth in Minnesota since World War II: The data Economic theory: The sources of economic growth Economic policy: what role for policy in promoting and sustaining economic growth?

7. Economic growth in Minnesota since World War II: The data

17. Economic theory:Output per person (Per capita income) output per person = participation rate ∙ output per worker

18. Economic theory:Growth of per capita income

19. Economic theory:Growth of output per worker

20. Economic theory:Growth of per capita income

22. Catching-up growth

24. Economic theory:Resource-based growth

25. Economic theory:Catching-up growth

26. Economic theory:Catching-up growth

28. Married women with children

30. Human capital

32. Education: grew faster than national average

33. High school graduation rates rose

35. Health

36. Public health (vaccination rates, infant and maternal mortality)

38. Private capital

39. Broad and deep local financial markets and institutions

41. Public capital

42. Transportation (roads, river transport)

44. Computers

46. Human rights efforts

48. Endogenous: total factor productivity comes from intentional application of resources towardsinnovation

50. Economic theory:Endogenous growth

52. Quantities of human capital and physical capital are growing more slowly

53. Innovation has picked up

54. Medical devices

56. Early-childhood education

57. Improved graduation rates for non-white students

59. For young: prevention

60. For adults: wellness

62. Better transportation, not just more

63. Improve productivity of water and sewer systems

65. The big questions for public policy: Do people follow jobs? or Do jobs follow people?

66. How Minnesota Became Above Average 1950s-2000s (People follow jobs) Public policy focus: Accumulate and attract more human and physical capital Technology transfer 2010 onward (Jobs follow people) Public policy focus: Improve quality of human and physical capital Technological innovation

67. Thanks for your attention and participation!

68. Questions?