ECN 503 Lecture Notes - Lecture 6: World Bank
9 May 2016
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Agricultural workers high fluctuation in income (before and after harvest) Temporary situation of poverty: ( ex: excess rain fall = low income for that time) ( next year unlikely it will happen again) ( not permanent) ( short term policy) Chronic: poverty for a long time, ( long term investment) Ex: someone making less than is considered poor, Headcount ( you count the # of people makes les than 100) ( have to be measured with respect to the population) A b c 3 groups each have 100 people. World bank has budget ,000 to be allocated to 200 people in groups a & b. Every dollar invested raises income by a dollar ( problem arsies when how to allocate) ( how to allocate the budget) suppose yu are instructed to reduce headcount as far as possible. Solution: ( members of group a ( poorest of the poor) should receive some allocation)
