Born in Russia, he kept to his Russian roots - in his economics, history and as a critic of Russian literature. His early work concentrated on development in Soviet Russia and Eastern Europe. In a celebrated 1947 article, he found the Gerschenkron effect (changing the base year for an index determines the growth rate of the index). His early work, often pursued the statistical tricks of Soviet planners.
Gerschenkron also advanced the linear stages theory of economic development which posits that economic development goes forward in fairly determined stages. However, he did accept that different periods exhibit different types of development: for instance, with the coexistence of advanced and backward countries, that latter could skip several stages which the former had to go through by adopting their advanced technology. This was illustrated by the peculiar paths of industrialization of MeijiJapan and Soviet Russia. Gerschenkron postulated that the more backward an economy was at the outset of development - he never exactly defined how 'backwardness' was to be measured, though alluded to its relation along a northwest-to-southeast axis within Europe, with the United Kingdom at the most advanced extreme and the Balkan countries at the least developed extreme - the more certain conditions were likely to occur during growth - consumption would be squeezed in favor of investment in countries starting from farther behind, there was likely to be a greater reliance on banks and other means of directing investment, among other conditions.
Despite his roots in the Austrian school he criticized the "penny pinching, 'not-one-heller-more-policies'," of the prominent Austrian economist Eugen von Böhm-Bawerk when the latter was Austrian Minister of Finance and laid much of the blame for Austria's economic backwardness on Böhm-Bawerk's unwillingness to spend heavily on public works projects.
AlexanderGerschenkron was a Harvard economic historian trained in the Austrian School of economics.
Gerschenkron also advanced the linear stages theory of economic development which posits that economic development goes forward in fairly determined stages.
However, he did accept that different periods exhibit different types of development: for instance, with the coexistence of advanced and backward countries, that latter could skip several stages which the former had to go through by adopting their advanced technology.
As the subtitle of the volume suggests, one of its major purposes is to reconsider AlexanderGerschenkron's influential contention that universal banking, defined broadly in the introduction to the volume as "banks that accept deposits, and engage in both short- and long-term lending" (p.
An alternative explanation to Gerschenkron's, an exploration of which motivates the volume, is that of the other co-editor, Verdier, a political scientist at Ohio State University.
In a nutshell, Verdier's alternative to Gerschenkron holds that universal banking arises when the deposit market is segmented between non-profit and profit-oriented institutions (which is more likely in decentralized polities), and when the central bank is active as a supplier of liquidity and lender of last resort.
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