Unformatted text preview: concepts of exogeneity and endogeneity. 4. Define: (a) social welfare functions: (b) desirable properties of social welfare functions 5. Do poverty measures P , P 1 , and P 2 satisfy the principle of transfers? Give examples as to why each may or may not do so. 6. Can you explain why the Lorenz curve could not lie above or to the left of the diagonal at any point? 7. What is Lorenz dominance? What does it imply about the ranking of inequality? Social welfare? 8. Exercises #1, 2, 3, 4, 8 & 9 in Chapter 6, D. Ray. Development Economics ....
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- Fall '09
- Economic Development, Gini coefficient, social welfare functions