On the Nature and Causes of the Wealth of Nations: Longevity, Institutions, and Patience

<jats:p>We reconsider some of the central aspects in Adam Smith's work in light of advances in research on long-run development. The main argument is that future orientation - "patience" - represents a key unifying feature in the mechanisms of long-run development. This feature appears to have been part of Smith's argument in various manifestations. We develop the argument along the lines of a simple conceptual framework and discuss the consequences of the influence of life expectancy and institutional quality on the patience embodied in the population for the emergence of development traps. We then illustrate how a feedback from patience to improved life expectancy and institutions can initiate a process of sustained development.</jats:p>