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Section 2

Section 2. POLISCI 247A/POLISCI 347A/Econ 162. Agenda of the day. Housekeeping Any Questions? Unwrapping Development Short Group Activity: Hindrances to Development Any Questions?. Housekeeping.

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Section 2

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  1. Section 2 POLISCI 247A/POLISCI 347A/Econ 162

  2. Agenda of the day • Housekeeping • Any Questions? • Unwrapping Development • Short Group Activity: Hindrances to Development • Any Questions?

  3. Housekeeping • Please make sure you are signed up for the section you want to be in on Canvasbefore the end of the week! No more switching after that • Problem Set is out and due on Tuesday in class • Question 2: Use the payoffs from Prof. Weingast’s presentation from this week • Question 2: If you can’t mathematically show how to solve the problem, write up your intuition. Be as clear as possible. • You can either type up your answers or handwrite them. Whatever you choose, be neat! • We will not be accepting late homework!

  4. What is development? • Economic? • GDP per capita? • Gini Coefficient? • Political? • Rule of Law? • Executive Constraint? • Human Rights? • Democracy? • Social? • Human capital? • Social harmony? • Internet access? • Some combination thereof? • Public goods provision (e.g. health infrastructure)

  5. Recap: What Leads to Development? • Institutions • Impersonal • Perpetual • Equal access • Geography • Distance from equator? • Disease environment • Culture • Structure of society based on interactions • Luck

  6. Institutions • Property Rights as the canonical example • Structuring the rules of the game • Who can interact? • When can they interact? • How do they interact? Punishment possible? • Is Game Theory an institution in itself? • Intentional choice about components of the game  the equilibrium

  7. Hindrances to development • How do you define it? Provide an example in political science/economics of this phenomenon. • How is this modeled formally? • Why is this a hindrance to development? • Can institutions serve to overcome this issue? If so, how? (See if you can provide an example) • What are alternative means to resolve these issues?

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