{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

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

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern