2 - Urban bias Definition-refers to a political economy...

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Urban bias Definition- refers to a political economy argument according to which economic development is hampered by groups who, by their central location in urban areas, are able to pressure governments to protect their interests Source- Lecture, I think it was also mentioned in Deaton Compared to rural people, city dwellers are: Better educated Better able to organize Closer to the government More politically dangerous! POLICIES BIASED TOWARDS URBAN CLASSES Urban Bias and agriculture Industry wants low food prices Export controls/taxes, price ceiling This makes urban bias even worse Underinvestment in agriculture Political power “locked in” to cities Significance -- Vicious cycle- start off with artificially low prices on food, can’t make any money on agriculture, so they move to the cities, and then while at the cities they demand low agricultural prices. This is the urban bias cycle. Engel’s Law
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This note was uploaded on 11/17/2011 for the course IDS 100B taught by Professor Ross during the Spring '11 term at UCLA.

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2 - Urban bias Definition-refers to a political economy...

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