INTL DV 130 Lecture Notes - Anne Osborn Krueger, Planned Economy, Deadweight Loss
Document Summary
According to the development economists the profitability of capital invested in agriculture was less than that invested in industry. Why did they believe that: could be a question about agricultural pessimism. Low elasticity of consumer demand can"t expand revenue by lowering the price. Upward line/slope is a devaluation and a downward line/slope is an overvaluation. Metaphor of the chinese plate factory: industrialization based on protected markets is not likely to succeed. Isi model brought early success, but not long-term success. The central explanation poor implementation: heterodox model - mixed model that combines some features of isi with some of the features of a market-based approach combined with other ideal factors. The orthodox explanation the laws of economics: was the usual winner in this debate, keynesian and orthodox economics shared certain features. Most important shared supposition is governmental intervention. Failure discredited the keynesian school and government intervention in anything economic. No single person has been as influential as anne krueger.