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Development Economics

Malthusian Theory of Population

The Malthusian Theory of Population is a theory of exponential population growth and arithmetic food supply growth. Thomas Robert Malthus, an English cleric, and scholar, published this theory in his 1798 writings, An Essay on the Principle of Population.He believed that through preventative checks and positive checks, the population would be…
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The Environmental Kuznets Curve

The Environmental Kuznets Curve is used to graph the idea that as an economy develops, market forces begin to increase and economic inequality decreases. More specifically that as the economy grows, initially the environment suffers but eventually the relationship between the environment and the society improves. The Kuznets hypothesis was first…
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Equitable Distribution of Income

A more equitable distribution of income may help accelerate growth and promote economic development. Equitable doesn't mean equal distribution of income. It refers to the distribution of income that is 'fair,' but the concept of 'fair' is subjective. Distribution of wealth and income is the way in which the wealth and income of a nation are…
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Purchasing Power Parity

Purchasing Power Parity (PPP) is a theory that says that in the long run (over several decades), the exchange rates between countries should even out so that goods essentially cost the same in both countries. The Purchasing Power Parity theory explains that there should be no arbitrage opportunities (where price differences in countries can…
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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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