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2 edition of Growth theory through the lens of development economics found in the catalog.

Growth theory through the lens of development economics

by Abhijit V. Banerjee

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  • 24 Currently reading

Published by Massachusetts Institute of Technology, Dept. of Economics in Cambridge, MA .
Written in English


About the Edition

Growth theory traditionally assumed the existence of an aggregate production function, whose existence and properties are closely tied to the assumption of optimal resource allocation within each economy. We show extensive evidence, culled from the microdevelopment literature, demonstrating that the assumption of optimal resource allocation fails radically. The key fact is the enormous heterogeneity of rates of return to the same factor within a single economy, a heterogeneity that dwarfs the cross-country heterogeneity in the economy-wide average return. Prima facie, we argue, this evidence poses problems for old and new growth theories alike. We then review the literature on various causes of this misallocation. We go on to calibrate a simple model which explicitly introduces the possibility of misallocation into an otherwise standard growth model. We show that, in order to match the data, it is not enough to have misallocated factors: There also needs to be important fixed costs in production. We conclude by outlining the contour of a possible non-aggregate growth theory, and review the existing attempts to take such a model to the data. Keywords: Non-aggregative growth theory, aggregate production function, factor. JEL Classifications: O0, O10, O11, O12, O14, O15, O16, O40.

Edition Notes

StatementAbhijit V. Banerjee, Esther Duflo
SeriesWorking paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 05-01, Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 05-01.
ContributionsDuflo, Esther, 1972-, Massachusetts Institute of Technology. Dept. of Economics
The Physical Object
Pagination84, [4] p. ;
Number of Pages84
ID Numbers
Open LibraryOL24642019M
OCLC/WorldCa58722268

  The book highlights the textbook theory of New Growth Theory and how economic growth results from the increasing returns associated with new knowledge and new technology. Further points of view are introduced about how technology is the driver of economic growth and a discussion is presented on the aggregate supply and aggregate demand side. Title: doi/S(05) Created Date: 11/25/ PM.

Development theory, cluster of research and theories on economic and political development.. The emergence of development theory. The use of the term development to refer to national economic growth emerged in the United States beginning in the s and in association with a key American foreign policy concern: how to shape the future of the newly independent states in ways that would . Development economics is a branch of economics which deals with economic aspects of the development process in low income countries. Its focus is not only on methods of promoting economic development, economic growth and structural change but also on improving the potential for the mass of the population, for example, through health, education and workplace conditions, whether through .

Growth theory provides a rich and versatile analytical framework through which fundamental questions about economic development can be examined. This book is an introduction to the newer features of growth theory that are particularly useful in examining the issues of economic development. , and served anywhere from to students depending on district growth and 2 Culture is a local microsystem phenomenon, as noted above. Cultural contradictions between student microsystems can cause confusion and delay development. Bronfenbrenner‟s theory suggests that when.


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Growth theory through the lens of development economics by Abhijit V. Banerjee Download PDF EPUB FB2

GroAvthTheorythroughtheLensofDevelopmentEconomics eeandEstherDuflo* December 1Introduction:Neo-classicalGrowthTheory Thepremiseofneo. texts All Books All Texts latest This Just In Smithsonian Libraries FEDLINK (US) Genealogy Lincoln Collection. National Emergency Library. Top American Libraries Canadian Libraries Universal Library Community Texts Project Gutenberg Biodiversity Heritage Library Children's Library.

Open Library. Growth Theory through the Lens of Development Economics Abhijit Banerjee and Esther Duflo Massachusetts Institute of Technology Abstract Growth theory traditionally assumed the existence of an aggregate production function, whose existence and properties are closely tied to the assumption of optimal resource allocation within each economy.

Abstract. Growth theory has traditionally assumed the existence of an aggregate production function, whose existence and properties are closely tied to the assumption of optimal resource allocation within each economy. We show extensive evidence, culled from the micro-development literature, demonstrating that the assumption of optimal resource allocation fails radically.

Growth Theory Through the Lens of Development Economics Abhijit V. Banerjee and Esther Duflo ∗ March 1 Introduction: Neo-classical Growth Theory The premise of neo-classical growth theory is that it is possible to do a reasonable job of explaining the broad patterns of economic change across countries, by looking at it through the lens of an aggregate production function.

Growth theory has traditionally assumed the existence of an aggregate production function, whose existence and properties are closely tied to the assumption of optimal resource allocation within.

Growth theory traditionally assumed the existence of an aggregate production function, whose existence and properties are closely tied to the assumption of optimal resource allocation within each economy.

Growth Theory Through the Lens of Development Economics. Abhijit V. Banerjee and Esther Duflo∗. March 1 Introduction: Neo-classical Growth Theory. The premise of neo-classical growth theory is that it is possible to do a reasonable job of explaining the.

1. Introduction: neo-classical growth theory. The premise of neo-classical growth theory is that it is possible to do a reasonable job of explaining the broad patterns of economic change across countries, by looking at it through the lens of an aggregate production by:   Growth theory traditionally assumed the existence of an aggregate production function, whose existence and properties are closely tied to the assumption of optimal resource allocation within each economy.

Growth theory has traditionally assumed the existence of an aggregate production function, whose existence and properties are closely tied to the assumption of optimal resource allocation within.

The book combines the theory with the stylized facts of economic growth and tries to theoretically substantiate. Growth reduces poverty and leads to a convergence of countries. Growth drives innovation and increases the inequality in democratic countries.

At the beginning the four growth models are s: Growth Theory through the Lens of Development Economics. Abhijit Banerjee and Esther Duflo. Chapter 07 in Handbook of Economic Growth,vol. 1, Part A, pp from Elsevier. Abstract: Growth theory has traditionally assumed the existence of an aggregate production function, whose existence and properties are closely tied to the assumption of optimal resource allocation within each economy.

Growth Theory through the Lens of Development Economics. Growth theory traditionally assumed the existence of an aggregate production function, whose existence and properties are closely tied to the assumption of optimal resource allocation within each economy.

We show extensive evidence, culled from the micro-development literature. Volume 1A, the first in this two volume set, covers theories of economic growth, the empirics of economic growth, and growth policies and mechanisms.

Volume 1B, the second in this two volume set, covers technology, trade and geography, and growth and socio-economic development. Focussing on output and growth (rather than distribution and consumption) the book discusses economic institutions, knowledge, capital, population, resources and government, and their role in the growth of output per head of population.

tweet. Development economics through the lens of psychology (English) Abstract. In this paper the author presents psychological evidence that helps to better understand a few core issues in development economics, such as savings, education and property rights.

Chapter 7 Growth Theory through the Lens of Development Economics | Semantic Scholar Abstract Growth theory has traditionally assumed the existence of an aggregate production function, whose existence and properties are closely tied to the assumption of optimal resource allocation within.

phrase "economic development." It would be useful to settle on a single set of terms to describe different subjects treated in development economics. For the purpose of this article, I shall use two basic terms to describe the transformation of an economy over time.

"Economic growth" is defined. Ch 07 Growth Theory through the Lens of Development Economics, pp Abhijit Banerjee and Esther Duflo Ch 08 Growth Econometrics, pp Steven Durlauf, Paul Johnson and Jonathan Temple Ch 09 Accounting for Cross-Country Income Differences, pp Francesco Caselli Ch 10 Accounting for Growth in the Information Age, pp.

Banerjee, Abhijit V. & Duflo, Esther, " Growth Theory through the Lens of Development Economics," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 7, pagesElsevier.development within the context of a theory of economic growth.

The assumption that there is a uniquely correct or at least a uniquely appropriate definition of economic growth, openly invites a very fundamental type of criticism. Economists and other social scientists jealously guard their right to define concepts as they see fit.Growth Theory. Growth theory witnessed a revival in the second half of the s and the s with the development of endogenous growth models (see, e.g., Acemoglu () and Barro and Sala-i-Martin () for textbook reviews).

From: Handbook of the Economics of International Migration, Related terms: Economic Growth; Population Growth.