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Preface Chapter 1: Introduction Chapter 2: Economic Development:Overview 2.1. Introduction 2.2. Income and growth 2.2.2. Historicalexperience 2.2.1. Measurement issues 2.3. Income distribution in developingcountries 2.4. The many faces of underdevelopment 2.4.1. Human development2.4.2. An index of human development 2.4.3. Per capita income and humandevelopment 2.5. Some structural features 2.5.1. Demographiccharacteristics 2.5.2. Occupational and production structure 2.5.3. Rapidrural--urban migration 2.5.4. International trade 2.6. Summary ExercisesChapter 3: Economic Growth 3.1. Introduction 3.2. Modern economic growth:Basic features 3.3. Theories of economic growth 3.3.1. The Harrod--Domarmodel 3.3.2. Beyond Harrod--Domar: Other considerations 3.3.3. The Solowmodel 3.4. Technical progress 3.5. Convergence? 3.5.1. Introduction3.5.2. Unconditional convergence 3.5.3. Level convergence: Evidence or lackthereof 3.5.4. Unconditional convergence: A summation 3.5.5. Conditionalconvergence 3.5.6. Reexamining the data 3.6. Summary Appendix 3.A.1. TheHarrod--Domar equations 3.A.2. Production functions and per capitamagnitudes Exercises Chapter 4: The New Growth Theories 4.1. Introduction4.2. Human capital and growth 4.3. Another look at conditional convergence4.4. Technical progress again 4.4.1. Introduction 4.4.2. Technologicalprogress and human decisions 4.4.3. A model of deliberate technical progress4.4.4. Externalities, technical progress, and growth 4.4.5. Total factorproductivity 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. Complementarities5.2.1. Introduction: QWERTY 5.2.2. Coordination failure 5.2.3. Linkages andpolicy 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 observations6.3. Measuring economic inequality 6.3.1. Introduction 6.3.2. Four criteriafor inequality measurement 6.3.3. The Lorenz curve 6.3.4. Complete measuresof inequality 6.4. Summary Exercises Chapter 7: Inequality andDevelopment: Interconnections 7.1. Introduction 7.2. Inequality, income,and growth 7.2.1. The Inverted-U hypothesis 7.2.2. Testing the inverted-Uhypothesis 7.2.3. Income and inequality: Uneven and compensatory changes7.2.4. Inequality, savings, income, and growth 7.2.5. Inequality, politicalredistribution, and growth 7.2.6. Inequality and growth: Evidence 7.2.7.Inequality and demand composition 7.2.8. Inequality, capital markets, anddevelopment 7.2.9. Inequality and development: Human capital 7.3. SummaryAppendix: Multiple steady states with imperfect capital markets Chapter 8:Poverty and Undernutrition 8.1. Introduction 8.2. Poverty: First principles8.2.1. Conceptual issues 8.2.2. Poverty measures 8.3. Poverty: Empiricalobservations 8.3.1. Demographic features 8.3.2. Rural and urban poverty8.3.3. Assets 8.3.4. Nutrition 8.4. The functional impact of poverty8.4.1. Poverty, credit, and insurance 8.4.2. Poverty, nutrition, and labormarkets 8.4.3. Poverty and the household 8.5. Summary Appendix: More onpoverty measures Exercises Chapter 9: Population Growth and EconomicDevelopment 9.1. Introduction 9.2. Population: Some basic concepts 9.2.1.Birth and death rates 9.2.2. Age distributions 9.3. From economicdevelopment to population growth 9.3.1. The demographic transition 9.3.2.Historical trends in developed and developing countries 9.3.3. Theadjustment of birth rates 9.3.4. Is fertility too high? 9.4. Frompopulation growth to economic development 9.4.1. Some negative effects9.4.2. Some positive effects 9.5. Summary Exercises Chapter 10: Rural andUrban 10.1. Overview 10.1.1. The structural viewpoint 10.1.2. Formal andinformal urban sectors 10.1.3. Agriculture 10.1.4. The ICRISAT villages10.2. Rural--urban interaction 10.2.1. Two fundamental resource flows10.2.2. The Lewis model 10.3. Rural--urban migration 10.3.1. Introduction10.3.2. The basic model 10.3.3. Floors on formal wages and theHarris--Todaro equilibrium 10.3.4. Government policy 10.3.5. Comments andextensions 10.4. Summary Exercises Chapter 11: Markets in Agriculture: AnIntroduction 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 creditChapter 12: Land 12.1. Introduction 12.2. Ownership and tenancy 12.3. Landrental contracts 12.3.1. Contractual forms 12.3.2. Contracts and incentives12.3.3. Risk, tenancy, and sharecropping 12.3.4. Tenancy forms: Otherconsiderations 12.3.5. Land contracts, eviction, and use rights 12.4. Landownership 12.4.1. A brief history of land inequality 12.4.2. Land size andproductivity: Concepts 12.4.3. Land size and productivity: Empiricalevidence 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, andthe agency problem 12.A.2. Tenancy contracts revisited Appendix 2:Screening and sharecropping Exercises Chapter 13: Labor 13.1. Introduction13.2. 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, andcasual labor markets 13.4.3. A model of nutritional status 13.5. Permanentlabor markets 13.5.1. Types of permanent labor 13.5.2. Why study permanentlabor? 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 ofdemand for credit and insurance 14.2. Rural credit markets 14.2.1. Whoprovides rural credit? 14.2.2. Some characteristics of rural credit markets14.3. 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 loans14.3.4. Default and collateral 14.3.5. Default and credit rationing 14.3.6.Informational asymmetries and credit rationing 14.3.7. Default andenforcement 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 creditpolicies 14.5.1. Vertical formal--informal links 14.5.2. Microfinance14.6. Summary Exercises Chapter 15: Insurance 15.1. Basic concepts 15.2.The perfect insurance model 15.2.1. Theory 15.2.2. Testing the theory15.3. Limits to insurance: Information 15.3.1. Limited information about thefinal outcome 15.3.2. Limited information about what led to the outcome15.4. Limits to insurance: Enforcement 15.4.1. Enforcement-based limits toperfect insurance 15.4.2. Enforcement and imperfect insurance 15.5. SummaryChapter 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. Economiesof scale 16.4. Summary Exercises Chapter 17: Trade Policy 17.1. Gainsfrom trade? 17.1.1. Overall gains and distributive effects 17.1.2. Overalllosses from trade? 17.2. Trade policy: Import substitution 17.2.1. Basicconcepts 17.2.2. More detail 17.3. Export promotion 17.3.1. Basic concepts17.3.2. Effect on the exchange rate 17.3.3. The instruments of exportpromotion: More detail 17.4. The move away from import substitution 17.4.1.Introduction 17.4.2. The eighties crisis 17.4.3. Structural adjustment17.5. Summary Appendix: The International Monetary Fund and the World BankChapter 18: Multilateral Approaches to Trade Policy 18.1. Introduction18.2. 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. Regionalagreements: Basic theory 18.3.3. Regional agreements among dissimilarcountries 18.3.4. Regional agreements among similar countries 18.3.5.Multilateralism and regionalism 18.4. Summary Appendix 1: Elementary GameTheory A1.1. Introduction A1.2. Basic concepts A1.3. Nash equilibriumA1.4. Games over time Appendix 2: Elementary Statistical Methods A2.1.Introduction A2.2. Summary statistics A2.3. Regression References Index