Development Economics First Midterm Study Guide
Beyond Economic Growth: An Introduction to Sustainable Development 2nd Edition
o Chapter 1: What is Development?
Quality of life access to education and health care, employment opportunities, availability
The Five Stages of Development:
1. Traditional Society- Refers to a country that has yet to begin
developing, where a high percentage of people are involved with
agriculture and a high percentage of the countrys wealth is invested in
activities such as
Exercise 1: In addition to the relevant multiple choice questions in the sample
exam, you might find the following exercises helpful. My plan is that these will be
reviewed in class on Wednesday, September 21. To truly gain from this you should
Head Count (HC): Number of individuals in poverty
Head Count Ratio : HCR = HC/n, where n is the
size of population
HCR is totally insensitive to the depth of poverty.
Shortfall: Si = P Yi , where P is the poverty line and
WHY STUDY INEQUALITY?
Even if we dont care about inequality in itself, we might care for it if it
AFFECTS income and/or growth
INEQUALITY ' INCOME
4 stylized models
MODEL 1: ASPIRATIONS, SAVINGS AND INEQUALITY
Starting point: good reasons to think that th