Contents

Preface

Chapter 1: Introduction

Chapter 2: Economic Development: Overview

• 2.1. Introduction
• 2.2. Income and growth
• 2.2.2. Historical experience
• 2.2.1. Measurement issues
• 2.3. Income distribution in developing countries
• 2.4. The many faces of underdevelopment
• 2.4.1. Human development
• 2.4.2. An index of human development
• 2.4.3. Per capita income and human development
• 2.5. Some structural features
• 2.5.1. Demographic characteristics
• 2.5.2. Occupational and production structure
• 2.5.3. Rapid rural--urban migration
• 2.5.4. International trade
• 2.6. Summary
• Exercises

Chapter 3: Economic Growth

• 3.1. Introduction
• 3.2. Modern economic growth: Basic features
• 3.3. Theories of economic growth
• 3.3.1. The Harrod--Domar model
• 3.3.2. Beyond Harrod--Domar: Other considerations
• 3.3.3. The Solow model
• 3.4. Technical progress
• 3.5. Convergence?
• 3.5.1. Introduction
• 3.5.2. Unconditional convergence
• 3.5.3. Level convergence: Evidence or lack thereof
• 3.5.4. Unconditional convergence: A summation
• 3.5.5. Conditional convergence
• 3.5.6. Reexamining the data
• 3.6. Summary
• Appendix
• 3.A.1. The Harrod--Domar equations
• 3.A.2. Production functions and per capita magnitudes
• Exercises

Chapter 4: The New Growth Theories

• 4.1. Introduction
• 4.2. Human capital and growth
• 4.3. Another look at conditional convergence
• 4.4. Technical progress again
• 4.4.1. Introduction
• 4.4.2. Technological progress and human decisions
• 4.4.3. A model of deliberate technical progress
• 4.4.4. Externalities, technical progress, and growth
• 4.4.5. Total factor productivity
• 4.5. Total factor productivity and the East Asian miracle
• 4.6. Summary
• Appendix: Human capital and growth
• Exercises

Chapter 5: History, Expectations, and Development

• 5.1. Introduction
• 5.2. Complementarities
• 5.2.1. Introduction: QWERTY
• 5.2.2. Coordination failure
• 5.2.3. Linkages and policy
• 5.2.4. History versus expectations
• 5.3. Increasing returns
• 5.3.1. Introduction
• 5.3.2. Increasing returns and entry into markets
• 5.3.3. Increasing returns and market size: Interaction
• 5.4. Competition, multiplicity, and international trade
• 5.5. Other roles for history
• 5.5.1. Social norms
• 5.5.2. The status quo
• 5.6. Summary
• Exercises

Chapter 6: Economic Inequality

• 6.1. Introduction
• 6.2. What is economic inequality?
• 6.2.1. The context
• 6.2.2. Economic inequality: Preliminary observations
• 6.3. Measuring economic inequality
• 6.3.1. Introduction
• 6.3.2. Four criteria for inequality measurement
• 6.3.3. The Lorenz curve
• 6.3.4. Complete measures of inequality
• 6.4. Summary
• Exercises

Chapter 7: Inequality and Development: Interconnections

• 7.1. Introduction
• 7.2. Inequality, income, and growth
• 7.2.1. The Inverted-U hypothesis
• 7.2.2. Testing the inverted-U hypothesis
• 7.2.3. Income and inequality: Uneven and compensatory changes
• 7.2.4. Inequality, savings, income, and growth
• 7.2.5. Inequality, political redistribution, and growth
• 7.2.6. Inequality and growth: Evidence
• 7.2.7. Inequality and demand composition
• 7.2.8. Inequality, capital markets, and development
• 7.2.9. Inequality and development: Human capital
• 7.3. Summary
• Appendix: Multiple steady states with imperfect capital markets

Chapter 8: Poverty and Undernutrition

• 8.1. Introduction
• 8.2. Poverty: First principles
• 8.2.1. Conceptual issues
• 8.2.2. Poverty measures
• 8.3. Poverty: Empirical observations
• 8.3.1. Demographic features
• 8.3.2. Rural and urban poverty
• 8.3.3. Assets
• 8.3.4. Nutrition
• 8.4. The functional impact of poverty
• 8.4.1. Poverty, credit, and insurance
• 8.4.2. Poverty, nutrition, and labor markets
• 8.4.3. Poverty and the household
• 8.5. Summary
• Appendix: More on poverty measures
• Exercises

Chapter 9: Population Growth and Economic Development

• 9.1. Introduction
• 9.2. Population: Some basic concepts
• 9.2.1. Birth and death rates
• 9.2.2. Age distributions
• 9.3. From economic development to population growth
• 9.3.1. The demographic transition
• 9.3.2. Historical trends in developed and developing countries
• 9.3.3. The adjustment of birth rates
• 9.3.4. Is fertility too high?
• 9.4. From population growth to economic development
• 9.4.1. Some negative effects
• 9.4.2. Some positive effects
• 9.5. Summary
• Exercises

Chapter 10: Rural and Urban

• 10.1. Overview
• 10.1.1. The structural viewpoint
• 10.1.2. Formal and informal urban sectors
• 10.1.3. Agriculture
• 10.1.4. The ICRISAT villages
• 10.2. Rural--urban interaction
• 10.2.1. Two fundamental resource flows
• 10.2.2. The Lewis model
• 10.3. Rural--urban migration
• 10.3.1. Introduction
• 10.3.2. The basic model
• 10.3.3. Floors on formal wages and the Harris--Todaro equilibrium
• 10.3.4. Government policy
• 10.3.5. Comments and extensions
• 10.4. Summary
• Exercises

Chapter 11: Markets in Agriculture: An Introduction

• 11.1. Introduction
• 11.2. Some examples
• 11.3. Land, labor, capital, and credit
• 11.3.1. Land and labor
• 11.3.2. Capital and credit

Chapter 12: Land

• 12.1. Introduction
• 12.2. Ownership and tenancy
• 12.3. Land rental contracts
• 12.3.1. Contractual forms
• 12.3.2. Contracts and incentives
• 12.3.3. Risk, tenancy, and sharecropping
• 12.3.4. Tenancy forms: Other considerations
• 12.3.5. Land contracts, eviction, and use rights
• 12.4. Land ownership
• 12.4.1. A brief history of land inequality
• 12.4.2. Land size and productivity: Concepts
• 12.4.3. Land size and productivity: Empirical evidence
• 12.4.4. Land sales
• 12.4.5. Land reform
• 12.5. Summary
• Appendix 1: Principal--agent theory and its applications
• 12.A.1. Risk, moral hazard, and the agency problem
• 12.A.2. Tenancy contracts revisited
• Appendix 2: Screening and sharecropping
• Exercises

Chapter 13: Labor

• 13.1. Introduction
• 13.2. Labor categories
• 13.3. A familiar model
• 13.4. Poverty, nutrition, and labor markets
• 13.4.1. The basic model
• 13.4.2. Nutrition, time, and casual labor markets
• 13.4.3. A model of nutritional status
• 13.5. Permanent labor markets
• 13.5.1. Types of permanent labor
• 13.5.2. Why study permanent labor?
• 13.5.3. Permanent labor: Nonmonitored tasks
• 13.5.4. Permanent labor: casual tasks
• 13.6. Summary
• Exercises

Chapter 14: Credit

• 14.1. Introduction
• 14.1.1. The limits to credit and insurance
• 14.1.2. Sources of demand for credit and insurance
• 14.2. Rural credit markets
• 14.2.1. Who provides rural credit?
• 14.2.2. Some characteristics of rural credit markets
• 14.3. Theories of informal credit markets
• 14.3.1. Lender's monopoly
• 14.3.2. The lender's risk hypothesis
• 14.3.3. Default and fixed-capital loans
• 14.3.4. Default and collateral
• 14.3.5. Default and credit rationing
• 14.3.6. Informational asymmetries and credit rationing
• 14.3.7. Default and enforcement
• 14.4. Interlinked transactions
• 14.4.1. Hidden interest
• 14.4.2. Interlinkages and information
• 14.4.3. Interlinkages and enforcement
• 14.4.4. Interlinkages and creation of efficient surplus
• 14.5. Alternative credit policies
• 14.5.1. Vertical formal--informal links
• 14.5.2. Microfinance
• 14.6. Summary
• Exercises

Chapter 15: Insurance

• 15.1. Basic concepts
• 15.2. The perfect insurance model
• 15.2.1. Theory
• 15.2.2. Testing the theory
• 15.3. Limits to insurance: Information
• 15.3.1. Limited information about the final outcome
• 15.3.2. Limited information about what led to the outcome
• 15.4. Limits to insurance: Enforcement
• 15.4.1. Enforcement-based limits to perfect insurance
• 15.4.2. Enforcement and imperfect insurance
• 15.5. Summary

Chapter 16: International Trade

• 16.1. World trading patterns
• 16.2. Comparative advantage
• 16.3. Sources of comparative advantage
• 16.3.1. Technology
• 16.3.2. Factor endowments
• 16.3.3. Preferences
• 16.3.4. Economies of scale
• 16.4. Summary
• Exercises

Chapter 17: Trade Policy

• 17.1. Gains from trade?
• 17.1.1. Overall gains and distributive effects
• 17.1.2. Overall losses from trade?
• 17.2. Trade policy: Import substitution
• 17.2.1. Basic concepts
• 17.2.2. More detail
• 17.3. Export promotion
• 17.3.1. Basic concepts
• 17.3.2. Effect on the exchange rate
• 17.3.3. The instruments of export promotion: More detail
• 17.4. The move away from import substitution
• 17.4.1. Introduction
• 17.4.2. The eighties crisis
• 17.4.3. Structural adjustment
• 17.5. Summary
• Appendix: The International Monetary Fund and the World Bank

Chapter 18: Multilateral Approaches to Trade Policy

• 18.1. Introduction
• 18.2. Restricted trade
• 18.2.1. Second-best arguments for protection
• 18.2.2. Protectionist tendencies
• 18.2.3. Explaining protectionist tendencies
• 18.3. Issues in trade liberalization
• 18.3.1. Introduction
• 18.3.2. Regional agreements: Basic theory
• 18.3.3. Regional agreements among dissimilar countries
• 18.3.4. Regional agreements among similar countries
• 18.3.5. Multilateralism and regionalism
• 18.4. Summary

Appendix 1: Elementary Game Theory

• A1.1. Introduction
• A1.2. Basic concepts
• A1.3. Nash equilibrium
• A1.4. Games over time

Appendix 2: Elementary Statistical Methods

• A2.1. Introduction
• A2.2. Summary statistics
• A2.3. Regression

References

Index