Development economics Flashcards
1
Q
what is the theory of the big push
A
the idea that underdeveloped countries are stuck in a vicious cycle and require a “big push” of investment to get out rather than a “bit by bit” investment
2
Q
what are the problems with giving effective aid
A
incentive problems
- Donors no care for effectiveness
- Recipients have bad policies
Knowledge problems
- Donors - what to give and to whom?
- Recipients - how to distribute and make use of?
3
Q
what is Nash equilibrium
A
a set of strategies, one for each player, such that no player has incentive to change their strategy given what the other is doing
4
Q
A
