ECO 2117 Lecture Notes - Lecture 2: Millennium Development Goals, Amartya Sen, Capability Approach
19 Oct 2016
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Document Summary
Study of how economies are transformed from stagnation to growth, from low income to high income and overcome absolute poverty. Commodity and resource markets are highly imperfect. Multiple equilibrium rather than a single equilibrium are common. Disequilibrium situations often prevail [prices do not equate supply and demand] The value premises are an inherent component of both economic analysis and economic policy. Development goals do not arise out of an objective empirical or positive analysis of what is, but ultimately from a subjective or normative value judgment about what should be. When there is agreement over subjective values, corresponding public policies based on objective theoretical and quantitative analyses can be pursued. Economies as social systems: the need to go beyond simple economics. Importance of taking account of intuitional and structural variables along with more traditional economic variables. A capability is the freedom that a person has to do the things she values doing.
