Soviet growth and American textbooks: An endogenous past

Between 1960 and 1980 American economics textbooks overestimated Soviet growth. They held that the Soviet economy was growing faster than the US economy and yet they kept the ratio of Soviet–US output constant over two decades. The textbooks downplayed any uncertainty associated with such growth estimates. We offer evidence that the optimistic portrait of the Soviet economy in the textbooks was in part driven by an assumption of efficiency and abstraction from institutional concerns.

Research highlights▶ Between 1960 and 1980 American economics textbooks overestimated Soviet growth. ▶ They held that the Soviet economy was growing faster than the US economy and yet they kept the ratio of Soviet-US output constant over two decades. ▶ The textbooks down played any uncertainty associated with such growth estimates. ▶ The textbooks's optimistic portrait of the Soviet economy was in part driven by an institution-blind assumption of efficiency.