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List of Figures and Tables |
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xii | |
| Resources on the Companion Website |
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xix | |
| Preface |
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xxi | |
| Acknowledgments |
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xxiii | |
| Introduction |
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1 | (17) |
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1 | (12) |
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13 | (1) |
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Why Should We Be Interested in Development Economics? |
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13 | (2) |
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15 | (3) |
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1 What Is Development? Indicators and Issues |
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18 | (36) |
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Seven Dimensions of Development |
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18 | (4) |
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22 | (6) |
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28 | (4) |
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32 | (2) |
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34 | (4) |
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Basic Needs: Human Development |
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38 | (6) |
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Sustainability in the Use of Natural Resources |
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44 | (2) |
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46 | (1) |
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Development Goes beyond Income, but Can Income Growth Deliver Development? |
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47 | (2) |
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Conclusion: Development Is Multidimensional, so Can We Agree on What It Is? |
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49 | (1) |
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50 | (1) |
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Review Questions: What Is Development? Indicators and Issues |
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50 | (1) |
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51 | (3) |
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2 The State of Development |
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54 | (28) |
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Income Growth and the Convergence Club |
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54 | (5) |
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59 | (6) |
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65 | (4) |
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69 | (3) |
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Sustainability in Resource Use |
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72 | (3) |
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75 | (4) |
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79 | (1) |
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79 | (1) |
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Review Questions: The State of Development |
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79 | (1) |
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80 | (2) |
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3 History of Thought in Development Economics |
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82 | (23) |
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Introduction: Why History Matters |
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82 | (2) |
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Basic Principles in Analyzing the History of Thought in Development Economics |
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84 | (1) |
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Selected Schools of Thought in Development |
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85 | (16) |
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101 | (1) |
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101 | (1) |
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Review Questions: History of Thought in Development Economics |
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102 | (1) |
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102 | (3) |
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4 Impact Evaluation of Development Policies and Programs |
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105 | (34) |
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How Do We Know What Works for Development? |
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105 | (1) |
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Objectives and Overview of Impact Evaluation |
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105 | (1) |
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Methods of Impact Evaluation |
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106 | (2) |
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108 | (7) |
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Matching Method to Construct Control Groups: Propensity Score Matching |
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115 | (2) |
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Difference-In-Differences Method |
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117 | (4) |
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Generalization of the Diff-In-Diffs Approach: Rollouts with Panel Data |
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121 | (2) |
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Regression Discontinuity Designs |
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123 | (3) |
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Event Analysis and Event-Severity Analysis |
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126 | (1) |
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Instrumental Variables Estimation |
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127 | (2) |
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Making Impact Evaluation More Useful for Policy Purposes |
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129 | (1) |
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130 | (1) |
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130 | (1) |
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Review Questions: Impact Evaluation of Development Policies and Programs |
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131 | (1) |
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Appendix 4 Econometrics of Impact Analysis |
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131 | (5) |
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132 | (1) |
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Propensity Score Matching |
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132 | (1) |
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Difference-In-Differences |
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133 | (1) |
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Staggered Entry with Panel Data: Rollout of a Program |
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134 | (1) |
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134 | (1) |
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135 | (1) |
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Instrumental Variables Estimation |
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135 | (1) |
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136 | (3) |
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5 Poverty and Vulnerability Analysis |
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139 | (27) |
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Characterize Welfare: Choice of an Indicator of Wellbeing |
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140 | (3) |
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Separating the Poor from the Non-Poor: Choosing a Poverty Line (z) |
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143 | (2) |
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Poverty Profile and Aggregate Indicators |
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145 | (7) |
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152 | (4) |
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156 | (1) |
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Correlates of Poverty: Who Are the Poor? Where Do They Live? What Do They Do? How Do They Live? |
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157 | (3) |
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The Geography of Poverty: Poverty Maps |
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160 | (1) |
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Are There Behavioral Poverty Traps? |
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161 | (1) |
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162 | (1) |
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Review Questions: Poverty and Vulnerability Analysis |
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163 | (1) |
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163 | (3) |
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6 Inequality and Inequity |
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166 | (24) |
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Describing and Measuring Inequality |
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166 | (3) |
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169 | (2) |
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Relationship Between Level of Income (GDPpc) and Inequality: Empirical Evidence on the Kuznets Inverted-U Curve |
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171 | (1) |
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The Long-Term Evolution of Inequality |
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172 | (2) |
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Pro-Poor Growth and the Growth Incidence Curve |
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174 | (1) |
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The Growth-Inequality-Poverty Development Triangle |
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175 | (9) |
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What Roles for Ethnic Fractionalization and Genetic Diversity? |
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184 | (1) |
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What Role for Equity in Development? |
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185 | (1) |
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186 | (1) |
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187 | (1) |
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Review Questions: Inequality and Inequity |
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187 | (1) |
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188 | (2) |
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7 International Trade and Industrialization Strategies |
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190 | (29) |
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190 | (2) |
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Gains from Trade: Why Countries Trade, but Not Everyone Gains |
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192 | (4) |
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Absolute, Comparative, and Competitive Advantage |
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196 | (1) |
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Trade Policy and Indicators of Protection |
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197 | (3) |
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Using Trade Policy for Development: Tariffs and Subsidies |
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200 | (3) |
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Dynamic Gains from Trade: Import-Substitution Industrialization as a Policy Gamble |
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203 | (1) |
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Trade and Industrialization Strategies: How to Choose |
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204 | (3) |
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Is Trade Good for Growth? |
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207 | (1) |
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Is Trade Good for Poverty Reduction? |
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208 | (1) |
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Trade and the Environment |
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209 | (4) |
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213 | (1) |
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Decline of the WTO and Threats to Multilateralism |
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214 | (1) |
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215 | (1) |
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Review Questions: International Trade and Industrialization Strategies |
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216 | (1) |
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217 | (2) |
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8 Explaining Economic Growth: The Macro Level |
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219 | (27) |
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219 | (1) |
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Generic Modeling of Income Growth |
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219 | (2) |
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Capital Accumulation for Growth: The Harrod-Domar Model |
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221 | (4) |
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Productivity Growth and Factor Deepening: The Solow Model |
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225 | (5) |
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Economic Growth and Structural Transformation |
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230 | (2) |
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The Role of Agriculture in Growth: Dual-Economy Models |
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232 | (4) |
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The Role of Agriculture in Growth: Other Models |
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236 | (2) |
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Endogenous Economic Growth |
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238 | (4) |
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242 | (1) |
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Review Questions: Explaining Economic Growth--the Macro Level |
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243 | (1) |
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244 | (2) |
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9 Exchange Rate Policies and Development |
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246 | (11) |
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Trade, Financial Flows, and Exchange Rate |
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246 | (1) |
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247 | (3) |
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The Real Exchange Rate and Its Effect on Real Balances |
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250 | (3) |
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Two Examples of Exchange Rate Shocks |
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253 | (2) |
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255 | (1) |
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Review Questions: Exchange Rate Policies and Development |
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256 | (1) |
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256 | (1) |
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10 The Economics of Farm Households |
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257 | (21) |
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Importance of Farm Households |
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257 | (2) |
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Definitions of Farm Households |
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259 | (3) |
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Farm Household Behavior Models |
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262 | (3) |
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Responses to Market Signals: Separability |
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265 | (1) |
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Net Buyers, Net Sellers, and Food Security |
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266 | (1) |
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Can the Family Farm Be Competitive and Survive? |
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267 | (3) |
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Risk and Self-Insurance in Household Behavior |
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270 | (2) |
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Intra-Household Allocation of Resources and Gender Roles |
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272 | (2) |
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274 | (1) |
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Review Questions: The Economics of Farm Households |
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275 | (1) |
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275 | (3) |
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11 Population and Development |
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278 | (23) |
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Definitions: Demographic Concepts |
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278 | (4) |
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Some Data for World Population |
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282 | (2) |
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History of World Population and Demographic Transition |
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284 | (1) |
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Causes of Population Growth |
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285 | (7) |
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292 | (5) |
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Other Issues in Population and Development |
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297 | (1) |
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298 | (1) |
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Review Questions: Population and Development |
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298 | (1) |
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299 | (2) |
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301 | (25) |
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301 | (3) |
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304 | (7) |
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Extensions of the Model and Empirical Results |
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311 | (5) |
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316 | (6) |
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322 | (1) |
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322 | (1) |
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Review Questions: Labor and Migration |
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323 | (1) |
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323 | (3) |
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13 Financial Services for the Poor |
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326 | (27) |
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The Generic Lender Problem |
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326 | (2) |
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328 | (1) |
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Local Moneylenders, or "Usurers" |
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328 | (1) |
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Local Sources of Credit Based on Interlinkages in Value Chains |
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329 | (1) |
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Informal Institutions: ROSCAs |
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330 | (1) |
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Village Banks and Self-Help Groups |
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331 | (1) |
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The Microfinance Revolution: Group Lending |
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332 | (2) |
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MFIs with Individual Loans: Proximity Lending |
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334 | (1) |
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Other Issues in Microfinance Lending |
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335 | (2) |
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Impact Evaluations on Microfinance Lending |
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337 | (1) |
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Increasing Savings: Offering Saving Opportunities and Incentives |
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338 | (2) |
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Can the Poor Be Insured? The Promise of Index-Based Weather Insurance |
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340 | (6) |
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Mobile Money and Digital Credit |
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346 | (1) |
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Conclusions on MFIs: How Useful are they for Poverty Reduction? |
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347 | (1) |
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348 | (1) |
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Review Questions: Financial Services for the Poor |
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349 | (1) |
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350 | (3) |
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14 Social Programs and Targeting |
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353 | (26) |
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Determinants of Income and Paths out of Poverty |
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353 | (1) |
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A Typology of Social Programs |
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354 | (3) |
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The Targeting of Social Programs: Benefits and Costs |
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357 | (1) |
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Errors in Targeting: Exclusion (Type I) and Inclusion (Type II) Errors |
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358 | (2) |
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360 | (6) |
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366 | (1) |
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Other Issues in Implementation of Transfers |
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367 | (4) |
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Using Social Safety Net Programs for Efficiency Gains and Growth |
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371 | (1) |
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Impact Evaluation of Social Programs: Some Examples |
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372 | (2) |
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The Debate over Cash Transfers vs. Development Programs for Poverty Reduction |
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374 | (1) |
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375 | (1) |
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Review Questions: Social Programs and Targeting |
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375 | (1) |
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376 | (3) |
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15 Sustainable Development and the Environment |
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379 | (23) |
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Links between Development, Resource Conservation, and Environmental Sustainability |
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379 | (2) |
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381 | (7) |
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Incomplete Property Rights |
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388 | (2) |
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390 | (1) |
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Discounting: Private vs. Social, and Exponential vs. Hyperbolic |
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391 | (2) |
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The Sustainability Objective |
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393 | (1) |
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Dilemmas in the Environment-Development Relation |
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394 | (2) |
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Introducing New Markets: Payments for Environmental Services |
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396 | (3) |
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399 | (1) |
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Review Questions: Sustainable Development and the Environment |
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399 | (1) |
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400 | (2) |
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16 Common Property Resources and Determinants of Cooperation |
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402 | (17) |
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Why Are There Common Property Resources? |
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402 | (2) |
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404 | (1) |
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Grounds for Pessimism about Cooperative Behavior |
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405 | (1) |
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Cooperative Outcomes in Non-Cooperative Games |
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406 | (4) |
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Determinants of Cooperation and Collective Action |
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410 | (5) |
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Why Secure Property Rights Over Land Matter for Economic Development |
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415 | (1) |
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416 | (1) |
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Review Questions: Common Property Resources and Determinants of Cooperation |
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416 | (1) |
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417 | (2) |
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17 Human Capital: Education and Health |
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419 | (29) |
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Why Are Education and Health Important for Development? |
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419 | (1) |
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Indicators and Status of Education |
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420 | (3) |
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423 | (1) |
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What Determines the Levels of Schooling? |
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423 | (6) |
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Estimating the Return to Education |
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429 | (1) |
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Policy Issue: Conditional Cash Transfers |
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430 | (2) |
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Indicators and Status of Health |
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432 | (3) |
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What Determines Health Achievements? |
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435 | (4) |
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Impact of Health on Development Outcomes |
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439 | (2) |
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Issues in Health Policies: The Debate Around Subsidies |
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441 | (1) |
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442 | (1) |
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Review Questions: Human Capital--Education and Health |
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443 | (1) |
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443 | (5) |
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18 Agriculture for Development |
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448 | (29) |
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Agriculture for Development |
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448 | (6) |
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The State of World Agriculture |
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454 | (5) |
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Determinants of Agricultural Growth |
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459 | (11) |
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Food Security in Developing Countries |
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470 | (3) |
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The Political Economy of Agriculture for Development |
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473 | (1) |
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473 | (1) |
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Review Questions: Agriculture for Development |
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474 | (1) |
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474 | (3) |
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19 Development Aid and Its Effectiveness |
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477 | (26) |
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477 | (1) |
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Aid in a Historical Perspective |
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478 | (3) |
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The Evolution of Foreign Aid |
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481 | (2) |
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Fungibility of Foreign Aid |
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483 | (1) |
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Aid Effectiveness from a Macro Perspective |
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483 | (3) |
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Evaluating the Impact of Foreign Aid from a Micro Perspective |
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486 | (1) |
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The Practice of Foreign Aid |
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487 | (4) |
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Aid Strategies for Greater Effectiveness: What Can Be Done? |
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491 | (3) |
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The Debate on Foreign Aid |
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494 | (2) |
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Conclusion: Toward a New Aid Architecture |
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496 | (3) |
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499 | (1) |
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Review Questions: Development Aid and Its Effectiveness |
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500 | (1) |
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500 | (3) |
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20 Institutional Innovations and Development |
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503 | (15) |
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Institutions and Development |
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503 | (1) |
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Assumptions Underlying New Institutional Economics |
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504 | (1) |
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Market Failures Induced by Transaction Costs |
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505 | (2) |
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Institutional Responses to Market Failures |
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507 | (1) |
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Mechanisms of Institutional Change |
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508 | (2) |
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Examples of Institutional Innovations that Help Reduce Transaction Costs and/or Compensate for Market Failures |
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510 | (5) |
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515 | (1) |
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Review Questions: Institutional Innovations and Development |
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515 | (1) |
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515 | (3) |
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21 Political Economy and the Role of the State |
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518 | (25) |
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518 | (1) |
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519 | (1) |
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519 | (5) |
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The Pluralist State: Public Choice |
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524 | (10) |
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Economics of Public Authority: Rent-Seeking, Political Influence, and Corruption |
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534 | (3) |
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Strategies to Limit Rent-Seeking |
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537 | (4) |
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541 | (1) |
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Review Questions: Political Economy and the Role of the State |
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542 | (1) |
| References |
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543 | (3) |
| Index |
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546 | |
