Project #33756 - Development economics

1. Health

Read the article “AIDS in South Africa: The Mandela effect” from The Economist. (you can find it on attach Files)

1) According to paragraphs 1 to 3, how serious is the problem regarding AIDS in South Africa?

Read the rest of this article and answer the following questions.

2) What are the current policies and official attitudes that have been adopted by South Africa? List all the policies.

3) Consider the role of information in the health market. In this article, what roles does information play in the prevention and spread of AIDS?

4) Consider government supply in the health market. How do government investments change the supply of new technologies and new drugs? Are all the government policies successful? Explain.


2. Health and the Poverty Trap

Read the first paragraph in Poor Economics(find it in attach files), and answer the following questions.

1) How does Ibu Emptat’s experience suggest the existence of a poverty trap because of illness? Explain.

2) According to Sachs, why do public health investments have high returns and could help people get rid of the trap? Use the poverty trap theory and graphically illustrate Sachs’ suggestions.

3) Recall the bed nets experiment and the chlorine experiment that we discussed in class and state why Sachs’ suggestions may not be helpful.


3. Family decisions and education

Go to;

Select “education” and then select from the list below “education”.

Consider Udaipur, India.
(Note: you can click the country and find view the index for people at different income levels in the same graph.)

1) What percent of boys, ages 7 to 12, attend school? What percent of girls attend school? List the numbers in the chart below.

Table 1: Percent of children at school in Udaipur, India




Less than $1

More than 1$, less than $2








For the given income levels, is the percent of boys attending school higher than the percent of girls?

Suppose that the difference arises solely comes from family decisions. Read pages 119 to 123 of Poor Economics and provide an explanation from an economic perspective as to why families might prefer that boys attend school rather than girls.

2) Use another chart and fill in the numbers for

a. Girls ages 13 to 18;
b. Boys ages 13 to 18.

How does the percentage attending school change if you compare girls from 13 years to 18 years old with girls from 7 years to 12 years old? What is the corresponding comparison among boys?

Again, suppose that the difference solely arises from family decisions. Read pages 86 to 89 in Poor Economic and provide a possible explanation for this from an economic perspective.

3) If you would like to increase school attendance in Udaipur, based on your findings above, would you support the “demand side” story or the “supply side” story? Why?


4) According to your answers above, which policies would you adopt to increase school attendance rates in Udaipur? Explain.

Subject Business
Due By (Pacific Time) 06/24/2014 12:00 pm
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