The Journal of Economic Perspectives

TheJournalof

Economi

A journal 0/ the American Economic Association

Winter 2014

TheJournal of

Economic Perspectives A journal of the American Economic Association Editor David H. Autor, Massachusetts Institute ofTechnology Co-editors Chang-Tai Hsieh, University of Chicago Ulrike Malmendier, University of Califomia at Berkeley Associate Editors Benjamin G. Edelman, Harvard University Amy Finkelstein, Massachusetts Institute ofTechnology Gordon Hanson, University ofCalifomia at San Diego Anil K Kashyap, University of Chicago Adam Looney, Brookings Institution David McKenzie, World Bank Richard ewe!l, Duke University Chad Syverson, University of Chicago Christopher Udry, Vale University

Managing Editor Timothy Taylor Assistant Editor Ann Norman

Editorial offices: ] oumal of Economic Perspectives American Economic Association Publications 2403 Sidney St., #260 Pittsburgh, PA 15203 email: jep@jepjournal.org

The ]ournal of Economic Perspectiues gratefully acknowledges the support ofMacalester College.

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Copyright Š 2014 by the American Economic Association; AlI Rights Reserved.

Composed by American Economic Association Publications, Pittsburgh, Pennsyivania, USA Printed by R. R. Donnelley Company, jefferson Ciry, Missouri, 65109, USA No responsibility for the views expressed by the authors in this journal is assumed bv the editors or by the American Economic Association.

THE]OURNAL OF ECONONIlC PERSPECTIVES (ISSN 0895-3309). Winter 2014. Yol. 2 . :\0. 1. The ]EP is published quarterly (February, May, August, November) by the American Economic Association, 2014 Broadway, Suite 305, Nashville, TN 37203-2418. Annual dues for rezular membership are 20.00, $30.00, or $40.00 depending on income; for an additional SI5.00, you can receive thisjournal in print. E-reader versions are free. For details and further information on the .:\L\!lO (O hnp; - - tvanderbilt.eduy AEA/.

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TheJournal o/

Economic Perspectives Contents

Volume 28·

umber 1 • Winter 2014

Symposia Manufacturing Martin Neil Baily and Barry P. Bosworth, "US Manufacturing: Understanding Its Past and Its Potential Future" Gregory Tassey, "Competing in Advanced Manufacturing: The Need for Improved Growth Models and Policies" Susan Helper and Rebecca Henderson, "Management Practices, Relational Contracts, and the Decline of General Motors"

3 27 49

Agriculture Brian Wright, "Global Biofuels: Key to the Puzzle of Grain Market Behavior" .. 73 Geoffrey Barrows, Steven Sexton, and David Zilberman, "Agricultural Biotechnology: The Promise and Prospects of Genetically Modified Crops" 99 Julian M. Alston and Philip G. Pardey, "Agriculture in the Global Economy" .. 121 Daniel A. Sumner, "American Farms Keep Growing: Size, Productivity, and Policy". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 147

Articles Christian Dustmann, Bernd Fitzenberger, Uta Schônberg, and Alexandra Spitz-Oener, "Frorn Sick Man of Europe to Economic Superstar: Germany's Resurgent Economy" Dani Rodrik, "When Ideas Trump Interests: Preferences, Worldviews, and Policy Innovations" ]onathan A. Schwabish, "An Economist's Guide to Visualizing Data"

167 189 209

Features Timothy Taylor, "Recommendations for Further Reading" "Correspondence: The One Percent": Robert Solow, N. Gregory Mankiw, Richard V. Burkhauser, and]effLarrimore : Notes '.'

COMPRA

235 243 249