ECO 2117 Lecture Notes - Lecture 2: Numeracy
20 Aug 2016
School
Department
Course
Professor
ECO2117
January 18th 2016
Comparative Economic Development
-can compare development through qualitative (words, history, context, motivations, etc) and
quantitative information (numbers)
-both types are important
-steps in the measurement process:
-concept (knowledge)
-indicator (literacy rate)
-data collection (survey)
-measurement (percentage of literate adults)
-absolute indicator refers to the number of students enrolled in primary education, for example
-relevant when studying one case
-relative indicators refer to the average number of students per school teacher, for example
-relative indicators are often more useful for comparison
-types of indicators other than absolute and relative:
-in policy analysis, one studies the cost and impact of policy interventions
-input (ex: public expenses on education)
-process (ex: average number of pupils per teacher)
-output (ex: percent of secondary school graduates)
-outcome (ex: increased numeracy rate)
-income indicators include:
-GNI: the total domestic and foreign value adde claimed by a country’s residents
-GDP + income residents receive from abroad = GNI
-GDP: total value of output for final use produced by an economy, by both residents and
non-residents
-these can be measured in per capita or using purchasing power parity
-PPP: adjustments are made for offering relative prices across countries so that living
standards can be measured more accurately
-since prices of non-traded goods are much lower in developing countries, PPP measures
will be higher then the exchange rate
-higher PPP when people are living better than the exchange rates say (other way around
when the exchange rates convey a better standard of living than actually is going on)
-exchange rate is formulated on the base of traded goods, what about haircuts, taxi cabs,
etc???
-PPP rates help compare countries’ citizens’ ability to buy goods and services they need to
live
-OECD: pushes other countries toward capitalism
-rich countries’ club
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Document Summary
Can compare development through qualitative (words, history, context, motivations, etc) and quantitative information (numbers) Absolute indicator refers to the number of students enrolled in primary education, for example. Relative indicators refer to the average number of students per school teacher, for example. Relative indicators are often more useful for comparison. Types of indicators other than absolute and relative: In policy analysis, one studies the cost and impact of policy interventions. Process (ex: average number of pupils per teacher) Output (ex: percent of secondary school graduates) Gni: the total domestic and foreign value adde claimed by a country"s residents. Gdp + income residents receive from abroad = gni. Gdp: total value of output for nal use produced by an economy, by both residents and non-residents. These can be measured in per capita or using purchasing power parity. Ppp: adjustments are made for offering relative prices across countries so that living standards can be measured more accurately.
