more Flashcards
Ricardo-Viner Model
different economic sectors have different interests, better in short-term
Stolper-Samuelson
better in the long-run, different kinds of economy: labor abundant & capital abundant
poverty line in US
$29,960
global poverty line
$1.90 a day for extreme poverty -> easily comparable across countries, but not sensitive to different levels of development
why don’t countries grow?
purely external -> Frank (dependency theory)
purely domestic -> Easterly, Friedman (govt. isn’t spending the right way)
it’s complicated -> DeSoto: Need to address unequal resources and access & give people opportunity, change regulation, allow for property rights, start at the bottom.
it’s society’s fault (culture and biases make us undervalue certain groups)
What is the upside of inequality?
motivates people
LME
Hierarchical firms
Board of trustees, CEO, board of directors, etc
workers can be readily exchanged
CMEs
workers have specific skills; usually one or two lifetime employers
problem: access to credit
- titling land (utilize unrecognized capital)
- microcredit/microfinance (support local entrepreneurs with very small loans)
- ROSCAs (rotating savings & credit associations; limited membership - each person puts in a small amount and then each month one person gets a lump-sum payment)
problem: childhood development/poverty
CCTs & UCTs
(na)Dictatorships may see faster growth where they invest but democracies may be more efficient overall
Why do revolutionary movements occur?
Tipping points(game) -> Laitian
Why aren’t bargains stuck before fighting?
Walter -> challenges to barganing, it may be rational for governments to fight a civil war to get more information and signal their resolve to other potential rebel groups, etc
(na)Nations persist even in a globalized world
Tufte
electorial election cycle: the best way to beat the combination of inflation and unemployment in the United States in the short run is to hold a presidential election since it pushes candidates to act and make economic change to get votes.
