Lecture 1 Notes

Explains persistence of poverty 57 puzzles of

Info icon This preview shows page 1. Sign up to view the full content.

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

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...
View Full 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