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Human Capital China versus India – former more able to make use of growth opportuni- ties Comparison across Indian states: Uttar Pradesh versus Kerala, tells us that investment in human capital huge impact on social indicators Probe report: survey work in the Northeast – points to importance of sup- ply of schools + improving quality Himachel Pradesh: recorded massive improvements in educational attain- ment – links between democracy, education and equity Human capital: central to social and political and economic development Cross Country and Regional Regression y st = α s + β t + φ hc st + γ z st + u st Cross-country panel data Problems of identification Problems of comparability
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Unformatted text preview: Problems with using expenditure Problems of intervention variables being too broad interesting but not quite sure what they are telling us Natural Policy Experiments The way forward – can look at very speciFc types of interventions Problems of identiFcation – Du±o’s work in this area exemplary Randomised Trials Experiments: treatment/control only way of getting truly exogenous policy variation Big area of work now, e.g., textbooks, devolution of school funding; Typically researcher-NGO partnerships – see MIT Poverty Action Lab Development Economics, LSE Summer School 2007 140...
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