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Development Economics in 2015 – Schaffner

Development Economics in 2015

Julie Schaffner
Tufts University

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Abstract: Compared to 30 years ago, the field of development economics today is more coherent, more grounded in empirical reality, and more relevant to practical policymaking.  It is also shaped by richer conceptions of well-being, people, and socioeconomic systems.  This paper offers a review of current development economics, highlighting the analytical framework that now ties the field together and the significance within the framework of eight themes, related to transfer costs, mobility costs, liquidity constraints, insurance constraints, present bias, learning and persuasion, cooperation and private institutions, and governance problems in public sector institutions.  The paper then briefly discusses the usefulness of the framework for policymaking by governments and NGOs, and the possible implications, more specifically, for Christian development work.

JEL Codes: O10, L31

 

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January 1, 2015

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