Lecture 1 Notes

Explains persistence of poverty 57 puzzles of

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Unformatted text preview: planations based only on information and incentives imperfect observability moral hazard limits on self-enforcing insurance schemes 60 Is it because of norms and social customs? If so then need to understanding why these norms and arrangements emerge which problems they solve how they are sustained requires a deeper understanding of decision-making of individuals and groups 61 Agricultural investment example Why don’t farmers adopt a profitable chemical fertilizer? does not require a large investment not due to high fixed costs to learning 62 Successful program was a commitment device: Purchase fertilizer for farmers just post harvest Two choices for when fertilizer is delivered (1) right away (2) when needed Option (2) increased adoption 63 Farmers committed themselves to not using the fertilizer for something else (not selling it) Did farmers value opportunity to commit their money to fertilizer? Would they have done the same for other goods? Protecting cash against themselves or family or neighbours? 64 MIT Department of Economics : Esther Duflo : Books 2 of 2 http://econ-www.mit.edu/faculty/eduflo/publications Books Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty by Abhijit V. Banerjee and E sther Duflo Publication date: April 2011 Website: http://www.pooreconomics.com/ Le Développment Humain (Lutter contre la pauvrete, volume 1) by Esther Duflo 2010, Paris: Le seuil 2011, Italian translation: Feltrinelli La polique de l'autonomie (Lutter contre la pauvrete, volume 2) by Esther Duflo 2010, Paris: Le seuil 2011, Italian translation: Feltrinelli Expérience, science et lutter contre la pauvreté by Esther Duflo 2009, Paris: Fayard © 2011 MIT. All rights reserved. 07/09/2011 3:17 PM...
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This document was uploaded on 02/26/2014 for the course ECON 541 at UBC.

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