Exam 4: Contemporary Models of Development and Underdevelopment  

The O-ring theory places emphasis on

What three factors distinguish models of endogenous growth from their neoclassical counterparts?

In contrast to the earlier neoclassical models of economic growth, in endogenous growth models, there is more emphasis on

The Big-Push theory argues that coordination failures may arise because of

Explain how the government can help the economy avoid a coordination failure.

Explain what is meant by the term coordination failure and provide an example.

Based on the HRV growth diagnostic framework and the case study in Box 4.2, what are the binding constraints faced by Brazil, El Salvador, and the Dominican Republic and how can these constraints be overcome?

The S-curve is used to illustrate

In endogenous growth models, it is assumed that

The new growth theory attempts to explain

Show in a diagram an S-curve and a 45-degree line. Are all three points of intersection stable equilibrium points? Explain.

Explain how the S-curve reflects the typical nature of complementarities?

The Solow residual helps explain growth that derives from

How can the O-ring theory help explain the existence of a low-level equilibrium that an economy may find itself in?

Suppose that a developing country devotes extensive resources towards improving the education and skill level of the labor force. How might this help the country avoid a coordination failure? Is this strategy likely to be successful? Why or why not?

Is a coordination failure a type of market failure? Explain.

According to the HRV growth diagnostic framework why is there no "one size fits all" development policy?

Explain the basic idea behind the Big Push model?

What is meant by the term technological spillover?

Is it possible for a super-entrepreneur to solve all of the coordination failure problems within?a developing economy? Discuss.