MGEC81H3 Study Guide - Final Guide: Lorenz Curve, Gini Coefficient, Big Push Model
8 Dec 2016
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Document Summary
Some potential questions after lectures 4 and 5: explain two long-run causal factors of comparative development across countries. Did something in turn cause these factors to exist (e. g. geography, institutional quality, evolution and timing of european development, colonial legacy, inequality, type of colonial regime). Schematic representation of leading theories of comparative models: physical geography (including climate) postcolonial institutions type of colonial regime - Important role played by economic institutions in the context of economic development is that institution plays a fundamental role in explaining the causes of economic growth. Some contributions of these economist provide a major source of inspiration for the international organizations such as imf and wb etc. and for the new polices prescribed for developing countries. However, one factor has proved to be correlated with economic growth in virtually every study. What is it: describe in detail a general model where complementarities can lead to multiple equilibria, where one of the equilibria is a low-income trap.
