Econ8.30.10

Econ8.30.10 - HW discussion GDP/Capita Sen Amartya Ch. 3...

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HW discussion GDP/Capita Sen Amartya Ch. 3 Sound macroeconomic policy: sound monetary policy (non-inflationary), balanced government fiscal budget, balanced current account: no trade deficit, no import/export excess. Policies that favor economic growth. Taiwan question: don’t know counterfactual. Don’t know other random events. Make two assumptions: assume unit homogeneity (assume cases are the same as Taiwan), no backward causality (endogeneity) Solution: random selection of large number of countries and randomly assign treatment (sound vs. unsound macro policy) Realistic Solution: use large number of countries and have control and treatment groups. (variation in the value of the treatment variable) List the characteristics shared by less developed economies: lower technology level (rate of growth is also important), higher rates of population growth, lower level of literacy, poor health care, high infant mortality->lower life expectancy->less education, less experience ->economic implication: can’t work
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This note was uploaded on 04/06/2011 for the course ECON 343 taught by Professor Miyao during the Fall '08 term at USC.

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Econ8.30.10 - HW discussion GDP/Capita Sen Amartya Ch. 3...

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