Project #33111 - Development economics

1. The Many Faces of Underdevelopment

1) List three factors (besides education) that may be positively correlated with economic growth.

Explain how each of these factors can enhance economic growth.

2) Explain how education may enhance economic growth. 

3) Will individuals’ education decisions be affected by economic growth? Explain.

4) Suppose a program designer in a NGO observes a low literacy rate (as one of the consequences of lack of education) and a low income level in a developing country. Suppose the designer would like to increase investments on education to boost the economy. Do you think this is a good idea? Explain.

2. The Solow Model

Derive the Solow Model and answer the following question: how would higher population growth rate change the income level and growth rate at the steady state?

3. Field Experiments

Watch Esther Duflo’s talk and answer the following questions. You can find the talk at http://www.youtube.com/watch?v=0zvrGiPkVcs

1) Why can’t we assess the effect of foreign aid by simply looking at how GDP changes in African countries after the aid arrives? Explain.

2) Consider the immunization example in the talk.

a. What puzzle is observed about immunization in developing countries? For example, do people hesitate to immunize because it is expensive?

b. How did the researchers design the randomized experiment to examine the effect of different policies on people’s immunization decisions? (How many comparable groups and what are the comparable groups?)

c. What did the researchers find from the randomized experiment?

 

d. What conclusions did the researchers draw? What is the policy implication?

Subject Business
Due By (Pacific Time) 06/12/2014 07:59 pm
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