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Dev2 (Subject) / Chapter1 (Lesson)
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- 1.)Richest countries in the world are about....times as rich as poorest in 2000s. If we look at PPP just ... to 1 2.) Percentage of ppl in low income countries is... 3.) av.income of poorest low-income is $... and of the richest $... 1.)80 times // 20 to1 2.) 80% 3.) $500 and $ 40000
- 1.) Lucas (1988) about these development/global data of rich and poor... 2.) We need a theory of economic development, to.... 1.) See this as possibilities. Indonesia is doing good, so is there something India could do the same way like Indonesia did? What is it about the "nature" of India, that makes it so? 2.) provide a framework to organize facts like these - to judge what is an opportunity and what a necessity.
- 1.) What is Development Economic about? 2.)Ability to let ... determine the ... to be obtained, not vice versa 1.) Raising income (= allows to obtain more food, medical care etc..), well-being (= quality of life) and capabilities of people everywhere 2.)questions / data
- 1.) ...% of world population live on less than 20% of US's GDP p.w. 1.)60%
- 1.) Good measure for well-being is... 2.) Direct symptoms of underdevelopment are.. 3.)Better than increasing wealth as a measure is... 4.) Life expectancy - log GDP p.c.: correltation? 1.) Life expectancy - longer life means being better in health, not suffering from hunger and having decent life conditions. 2.) Undernutrition , diseases and illiteracy 3.) Inequality (example Sri Lanka vs. Guatemala: SL poorer in total (p.c. income PPP) but more equal and (therefore?) a higher life expectancy, adult literacy, lower infant mortality 4.) Many countries far away from line - so pos. increasing line but many stuff unexplained
- 1.) Relationship log gdp p.c. and consumption p.c. is... 2.)Relationship log gdp p.c. and life expectancy is ... but.. 3.) GDP and infant mortality is... 4.) Growth of a country in terms of .... is an important proxy for many indicators of .... 1.) positive 2.) positive but some countries far away from line - much unexplained stuff 3.) Negative! But not even much difference between 5000 and 20000 ..already almost zero 4.) p.c. income / well-being
- 1.) Demographic characteristics: Developing countries tend to have both ... birth and death rates 2.) Population growth in developing countries is .... than in developed ones. 3.) Occupational pattern: Large share of production in developing co 1.) high 2.)much larger 3.) agriculture 4.) 30% / 1-7% 5.) 72% / 20% 6.) large
- 1.) Big-push theories (Acemoglu 1997): ...-sector- ....-period-model: firms may adopt new technology or not, workers may train or not 2.) When does workers training pay off? 3.)When does firms investment pay off? 4.) Period 1: ... ; Period 2 1.) 2-2 2.) Iff he is employed by a firm that invested in new technology 3.) Iff employs trained worker 4.)Firm and worker matched. Decide on training and investment // output produced. In-between, risk of seperation s
- 1.)What happens with costless search after seperation? 2.)What happens with costly search? 1.) No prob. Can easily match again after seperation 2.) Matching is imperfect
- 1.) Institutional Economics (Hoff 2000): Markets limited by ... and .... problems 2.) Therefore ...... arise in response to this 3.) Individuals can be active in one of 3 sectors: 4.) First group (....) extract rents from .... but not from 1.) information //enforcement 2.) Non-market institutions (no inherent drive to efficiency) 3.) rent-seeking, subsistence farming, cash-crop production 4.) Rent seekers // cash-crop production // subsistence farming 5.) rent-seeking// cash crop // rent-seeking // rent-seeking // cash-crop-production 6.) Multiple! Trapped in situation with small cash-crop sector caused by large rent-seeking sector
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- 1.) Testing Institutional Economics (Acemoglu/Johnson/Robinson 2001): Hypothsesis : Difference in institutions implemented by colonial powers is due to... 2.) What is used as an instrument for institutions? 3.) Reason for using instrument? 1.) "hospitability" of colony. The more inhospitable, the less colonial settlement, less incentive for good institutions 2.) settler mortality 17th-19th century (this might not be correlated with current growth once institutions have been accounted for) 3.) Deal with problem of endogeneity to see if only institutions cause growth or growth also causes institutions. Not all countries were colonialized --> not clear how to generalize this out of sample. Other data find: first-stage no longer holds.
- 1.) More explanation for low development - Banarjee/Duflo (2004):What explains low average rates of return to capital and eductaion? 2.) What other explenations here? 3.) Routes to development (Hoff 2000): What is not the fundamental constraint 1.) Imperfect capital and insurance 2.) Government failure // externalities and behavioural issues 3.) Lack of resources ! Old theories: transfer capital, it will remove distortions and let market take care of itself. --> There is slack in the economy. Need to shake up equilibrioum from a bad to a good one. Possible with same amount of resources. Need to change incentives!