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Development Economics

Harrod Domar Model

The Harrod Domar model shows the importance of saving and investment in a developing economy. The model was developed independently by Roy F. Harrod in 1939. The growth of an economy is positively related to its savings ratio and negatively related to the capital-output ratio. It suggests that there is no natural reason for an economy to have…
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Equitable Distribution of Income

Distribution of wealth and income is the way in which the wealth and income of a nation are divided among its population. Or the way in which the wealth and income of the world are divided among nations. A more equitable distribution of income may help accelerate growth and promote economic development. Equitable doesn't mean equal distribution…
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