ReviewFinal - Econ 171-EEP 151 Fall 2004 Handout #26 Review...

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1 12/8/04 Econ 171-EEP 151 Alain de Janvry Fall 2004 Xiangyi Meng, Jenny Liu Handout #26 Review Questions for Final Examination Review questions before mid-term Handout #1: Concepts of development 1. Development is a multidimensional concept. What are the seven dimensions that would enter in a definition of development? 2. Measures of growth: Define GDP, GNP, and PPP-adjusted GDP. Comparisons of GDPpc across countries: impact of exchange rate devaluation on the dollar measure of GDPpc. Comparisons over time of GDPpc: correction for inflation. For a given growth rate of income, how to measure the number of years it will take for income to double 3. Measures of basic needs and social welfare: Identify various indicators. The HDI: definition and usefulness. How to interpret a country’s difference between its HDI rank across countries and its GNPpc rank? What do z-scores measure? 4. Why give attention to inequality as an issue in development? 5. What is meant by poverty traps? Handout #2: State of the world 1. World growth: Do data on GDPpc support the convergence hypothesis (Homework #1)? Give examples of groups of countries that seem to be converging and diverging. Handout #3: Debate on globalization 1. What are the main arguments used by those who claim that globalization helps reduce poverty or increase poverty? ( Policy Brief #1 ) Handout #5: Analysis of poverty 1. Poverty: Definite the extreme and normal poverty lines. Define and give an interpretation of the P α index and its specialization to P 0 , P 1 , and P 2 . Graph and income profile and a poverty line: what do they show? How to calculate the aggregate P α from the P α for subgroups in the population? Can the number of poor increase if P 0 is falling? 2. Vulnerability. How would you define chronic and transitory poverty? Explain the concepts of vulnerability and risk aversion. What are instruments for risk reduction, risk management, and risk coping? 3. Anti-poverty interventions. How would explain to the Minister of Economics what are the main determinants of poverty? 4. How could you tell him/her about what social capital is and what role it could play in poverty reduction? Handout #6: Analysis of inequality: 1. Define the Lorenz curve, the Gini coefficient, and Kuznets income ratios. Why could there be a same Gini for two different Lorenz curves? 2. Explain what is the Kuznets-inverted U curve, why it is important for economic policy, and whether it seems to hold in reality? 3. How can inequality affect economic growth? Handout #7: Explaining economic growth 1. Harrod-Domar growth model: Define the ICOR. How is the rate of growth determined in the Harrod- Domar model? What are the model’s policy implications to accelerate growth? 2.
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This note was uploaded on 08/01/2008 for the course ECON 171 taught by Professor De janvry during the Fall '07 term at University of California, Berkeley.

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ReviewFinal - Econ 171-EEP 151 Fall 2004 Handout #26 Review...

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