Econ10.18.10 - A. Albert Hirschman. The Strategy of...

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

View Full Document Right Arrow Icon
A. Albert Hirschman. The Strategy of Economic Development . 1. How does “complementarity” matter in economic development? How does it relate to “induced investment?” 2. Explain the concept of an “efficient sequence.” 3. Under what circumstances do you think Albert Hirschman would favor government investment in “directly productive activities?” B. Cypher/Dietz Ch. 7 Q. 4: Professor Krueger has maintained that the solution to rent-seeking on the part of state functionaries is the shrinkage of the state. Peter Evans’ perspective is quite different. Compare their contrasting approaches to rent-seeking. Where do they agree, and when and why do they disagree? Assignment 7 1. Catching two birds with one stone. Investment will trigger much more investment. Strict complementarities would be steel and cement: need both for construction . Looser one would be need office equipment for office building. Additional investment without having to pay for it. Inducing investment with complementarities. Definition of induced investment: Induced investments are net beneficiaries of external economies, so that is the relation to induced investment. Complementarities lead to induced investment. All complementarities have an element of induced investment to it. 2.a->b->c->d…can skip b or c, come back to it later. Example: only 7 lines of internet per
Background image of page 1

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

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

Page1 / 3

Econ10.18.10 - A. Albert Hirschman. The Strategy of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online