Economics 270c - University of California, Berkeley
45
Economics 270c Development Economics Lecture 6 February 20, 2007
Transcript of Economics 270c - University of California, Berkeley
Econ
omic
s 27
0cD
evel
opm
ent E
cono
mic
s
Lect
ure
6 �
Febr
uary
20,
200
7
Eco
nom
ics
270c
: Lec
ture
62
Lect
ure
1: G
loba
l pat
tern
s of
eco
nom
ic g
row
th a
nd d
evel
opm
ent (
1/16
)
The
polit
ical
eco
nom
y of
dev
elop
men
tLe
ctur
e 2:
Ineq
ualit
y an
d gr
owth
(1/2
3)Le
ctur
e 3:
Cor
rupt
ion
(1/3
0) �
Gue
st le
ctur
e by
Ben
Olk
enLe
ctur
e 4:
His
tory
and
inst
itutio
ns (2
/6)
Lect
ure
5: D
emoc
racy
and
dev
elop
men
t (2/
13)
Lect
ure
6: E
thni
c an
d so
cial
div
isio
ns (2
/20)
Lect
ure
7: E
cono
mic
The
orie
s of
Con
flict
(2/2
7)Le
ctur
e 8:
War
and
Eco
nom
ic D
evel
opm
ent (
3/6)
Hum
an re
sour
ces
Lect
ure
9: H
uman
cap
ital a
nd in
com
e gr
owth
(3/1
3)Le
ctur
e 10
: Inc
reas
ing
hum
an c
apita
l (3/
20)
Lect
ure
11: H
ealth
and
nut
ritio
n (4
/3)
Lect
ure
12: T
he E
cono
mic
s of
HIV
/AID
S (4
/10)
Lect
ure
13: L
abor
mar
kets
and
mig
ratio
n (4
/17)
Lect
ure
14: E
nviro
nmen
t and
dev
elop
men
t (4/
24)
Lect
ure
15: S
ocia
l Lea
rnin
g an
d Te
chno
logy
Ado
ptio
n (5
/1)
Eco
nom
ics
270c
: Lec
ture
63
�R
efer
ee re
port
#2 p
asse
d ba
ck in
cla
ss n
ext T
uesd
ay
Eco
nom
ics
270c
: Lec
ture
64
Eco
nom
ics
270c
: Lec
ture
65
(1) U
nder
stan
ding
Eas
terly
and
Lev
ine
(199
7)(2
) Com
petin
g th
eorie
s of
eth
nic
dive
rsity
and
pub
lic g
oods
(A
lesi
naet
al 1
999,
Mig
uel a
nd G
uger
ty20
05)
(3) P
ande
(200
3) o
n re
serv
atio
ns a
nd p
ublic
pol
icy
Lect
ure
6 ou
tline
Eco
nom
ics
270c
: Lec
ture
66
�Th
is in
fluen
tial a
rticl
e do
cum
ents
the
corr
elat
ion
betw
een
coun
try le
vel e
thni
c di
vers
ity a
nd a
rang
e of
eco
nom
ic
and
publ
ic p
olic
y ou
tcom
es 1
965-
1990
(1) E
aste
rly a
nd L
evin
e (1
997,
QJE
)
Eco
nom
ics
270c
: Lec
ture
67
�Th
is in
fluen
tial a
rticl
e do
cum
ents
the
corr
elat
ion
betw
een
coun
try le
vel e
thni
c di
vers
ity a
nd a
rang
e of
eco
nom
ic
and
publ
ic p
olic
y ou
tcom
es 1
965-
1990
�Fo
llow
ing
Mau
ro (1
995)
, the
y ge
t aro
und
the
endo
gene
ityis
sue
in c
ross
-cou
ntry
regr
essi
on b
y us
ing
ethn
olin
guis
ticfra
ctio
naliz
atio
n (E
LF),
whi
ch th
ey c
laim
is
hist
oric
ally
det
erm
ined
and
larg
ely
stab
le o
ver t
ime
�U
nlik
e M
auro
(199
5), t
hey
do n
ot a
ttem
pt to
pin
dow
n th
e pr
ecis
e ch
anne
l thr
ough
whi
ch h
igh
ELF
affe
cts
econ
omic
out
com
es (i
n hi
s ca
se, c
orru
ptio
n)
(1) E
aste
rly a
nd L
evin
e (1
997,
QJE
)
Eco
nom
ics
270c
: Lec
ture
68
�E
LF w
as o
rigin
ally
con
stru
cted
by
Sov
iet a
nthr
opol
ogis
ts
in th
e 19
60s
(1) E
aste
rly a
nd L
evin
e (1
997,
QJE
)
Eco
nom
ics
270c
: Lec
ture
69
�E
LF w
as o
rigin
ally
con
stru
cted
by
Sov
iet a
nthr
opol
ogis
ts
in th
e 19
60s
�Li
ke a
Her
finda
hlin
dex
of in
dust
ry c
once
ntra
tion,
it ta
kes
on v
alue
s fro
m 0
(all
indi
vidu
als
belo
ng to
the
sam
e et
hnic
gro
up) t
o 1
(tota
l div
ersi
ty):
ELF
= 1
�Σ i
(Pi)2
whe
re th
e pr
opor
tion
of e
ach
ethn
ic g
roup
iis
den
oted
Pi
(1) E
aste
rly a
nd L
evin
e (1
997,
QJE
)
Eco
nom
ics
270c
: Lec
ture
610
Eco
nom
ics
270c
: Lec
ture
611
�M
ain
resu
lt: h
igh
leve
ls o
f ELF
are
ass
ocia
ted
with
muc
h sl
ower
eco
nom
ic g
row
th d
urin
g 19
65-1
990
GD
P p
er c
apita
gro
wth
i= a
+ b
(ELF
) i+
cXi+
ei
�Th
eir e
stim
ate
is b
= -0
.02
(t-st
atis
tic =
3.2
). S
o go
ing
from
ELF
=1 to
ELF
=0 in
crea
ses
annu
al p
er c
apita
gr
owth
by
arou
nd 2
poi
nts
on a
vera
ge
(1) E
aste
rly a
nd L
evin
e (1
997,
QJE
)
Eco
nom
ics
270c
: Lec
ture
612
Eco
nom
ics
270c
: Lec
ture
613
Eco
nom
ics
270c
: Lec
ture
614
Eco
nom
ics
270c
: Lec
ture
615
Eco
nom
ics
270c
: Lec
ture
616
�In
terp
reta
tion
issu
es(1
) Is
ELF
real
ly �e
xoge
nous
�? W
hat o
mitt
ed v
aria
bles
co
uld
be re
late
d to
eth
no-li
ngui
stic
div
ersi
ty?
An
impo
rtant
one
mig
ht b
e th
e co
untry
�s h
isto
ry o
f pol
itica
l ce
ntra
lizat
ion
(a la
Boc
kste
tteet
al 2
004)
(1) E
aste
rly a
nd L
evin
e (1
997,
QJE
)
Eco
nom
ics
270c
: Lec
ture
617
�In
terp
reta
tion
issu
es(1
) Is
ELF
real
ly �e
xoge
nous
�? W
hat o
mitt
ed v
aria
bles
co
uld
be re
late
d to
eth
no-li
ngui
stic
div
ersi
ty?
An
impo
rtant
one
mig
ht b
e th
e co
untry
�s h
isto
ry o
f pol
itica
l ce
ntra
lizat
ion
(a la
Boc
kste
tteet
al 2
004)
--E
.g.,
Fran
ce in
180
0 ve
rsus
190
0--
Em
pire
s le
ad to
ling
uist
ic a
nd c
ultu
ral h
omog
eniz
atio
n (c
ontra
st C
hina
with
Zam
bia
agai
n)--
Nun
n (2
005)
find
s th
at c
ontro
lling
for l
ocal
exp
osur
e to
th
e sl
ave
trade
�kno
cks
out�
the
pred
ictiv
e po
wer
of E
LF
in A
frica
n co
untri
es
(1) E
aste
rly a
nd L
evin
e (1
997,
QJE
)
Eco
nom
ics
270c
: Lec
ture
618
�In
terp
reta
tion
issu
es(1
) Is
ELF
real
ly �e
xoge
nous
�? W
hat o
mitt
ed v
aria
bles
co
uld
be re
late
d to
eth
no-li
ngui
stic
div
ersi
ty?
An
impo
rtant
one
mig
ht b
e th
e co
untry
�s h
isto
ry o
f pol
itica
l ce
ntra
lizat
ion
(a la
Boc
kste
tteet
al 2
004)
(2) W
hat i
s th
e ch
anne
l thr
ough
whi
ch d
iver
sity
affe
cts
publ
ic p
olic
y ou
tcom
es a
nd e
cono
mic
gro
wth
? N
ot
viol
ence
, but
cor
rupt
ion,
sch
oolin
g, in
frast
ruct
ure,
etc
.
(1) E
aste
rly a
nd L
evin
e (1
997,
QJE
)
Eco
nom
ics
270c
: Lec
ture
619
�O
ne s
et o
f the
orie
s em
phas
izes
diff
eren
ces
in
pref
eren
ces
acro
ss e
thni
c gr
oups
(Ale
sina
, Baq
iran
d E
aste
rly 1
999
QJE
)�
Thes
e th
eorie
s ar
e op
en to
the
char
ge o
f ass
umin
g th
e ex
iste
nce
of e
thni
c di
visi
ons
rath
er th
an s
how
ing
why
they
exi
st
(2) T
heor
ies
of d
iver
sity
and
col
lect
ive
actio
n
Eco
nom
ics
270c
: Lec
ture
620
Eco
nom
ics
270c
: Lec
ture
621
Eco
nom
ics
270c
: Lec
ture
622
Eco
nom
ics
270c
: Lec
ture
623
Eco
nom
ics
270c
: Lec
ture
624
�O
ne s
et o
f the
orie
s em
phas
izes
diff
eren
ces
in
pref
eren
ces
acro
ss e
thni
c gr
oups
(Ale
sina
, Baq
iran
d E
aste
rly 1
999
QJE
)�
Thes
e th
eorie
s ar
e op
en to
the
char
ge o
f ass
umin
g th
e ex
iste
nce
of e
thni
c di
visi
ons
rath
er th
an s
how
ing
why
they
exi
st
�A
noth
er s
et o
f the
orie
s in
stea
d fo
cus
on d
iffer
ence
s in
th
e ab
ility
of c
omm
unic
ate,
coo
rdin
ate,
and
san
ctio
n m
embe
rs w
ithin
an
ethn
ic g
roup
ver
sus
acro
ss e
thni
c gr
oups
(Mig
uel a
nd G
uger
ty20
05 J
Pub
E)
�Th
ese
theo
ries
may
be
mos
t app
ropr
iate
for l
ocal
co
llect
ive
actio
n in
poo
r cou
ntrie
s, s
mal
l com
mun
ities
(2) T
heor
ies
of d
iver
sity
and
col
lect
ive
actio
n
Eco
nom
ics
270c
: Lec
ture
625
�W
hat i
s th
e im
pact
of l
egis
lativ
e re
serv
atio
ns fo
r und
er-
repr
esen
ted
grou
ps o
n po
licy
outc
omes
?
�E
mpi
rical
focu
s on
sch
edul
ed c
aste
/ sc
hedu
led
tribe
(S
C/S
T) g
roup
s in
Indi
a an
d re
serv
atio
ns in
sta
te
legi
slat
ures
(rou
ghly
25%
of t
he to
tal)
--In
oth
er c
onte
xts
(e.g
., La
tin A
mer
ica)
rese
rvat
ions
for
wom
en a
re a
lso
com
mon
(3) P
ande
(200
3, A
ER
)
Eco
nom
ics
270c
: Lec
ture
626
Eco
nom
ics
270c
: Lec
ture
627
�In
Indi
a ce
rtain
sea
ts (m
ajor
itaria
nvo
ting
rule
) are
re
serv
ed fo
r SC
/ST
polit
icia
ns, a
nd n
ot n
eces
saril
y in
he
avily
SC
/ST
area
s
(3) P
ande
(200
3, A
ER
)
Eco
nom
ics
270c
: Lec
ture
628
�In
Indi
a ce
rtain
sea
ts (m
ajor
itaria
nvo
ting
rule
) are
re
serv
ed fo
r SC
/ST
polit
icia
ns, a
nd n
ot n
eces
saril
y in
he
avily
SC
/ST
area
s
�Th
us w
hen
a se
at is
ass
igne
d to
SC
or S
T, th
e el
ecto
rate
doe
s no
t cha
nge
�ju
st le
gisl
ator
iden
tity
(3) P
ande
(200
3, A
ER
)
Eco
nom
ics
270c
: Lec
ture
629
�In
Indi
a ce
rtain
sea
ts (m
ajor
itaria
nvo
ting
rule
) are
re
serv
ed fo
r SC
/ST
polit
icia
ns, a
nd n
ot n
eces
saril
y in
he
avily
SC
/ST
area
s
�Th
us w
hen
a se
at is
ass
igne
d to
SC
or S
T, th
e el
ecto
rate
doe
s no
t cha
nge
�ju
st le
gisl
ator
iden
tity
�S
tudi
es 1
6 In
dian
sta
tes
durin
g 19
60-1
992,
and
find
s co
nsid
erab
le v
aria
tion
in th
e ex
tent
of r
eser
vatio
n ov
er
time
(ofte
n re
late
d to
the
timin
g of
the
cens
us, a
nd s
tate
bo
rder
cha
nges
). S
he c
ondi
tions
on
time-
vary
ing
stat
e ch
arac
teris
tics,
incl
udin
g cu
rren
t SC
/ST
popu
latio
n sh
are
(Tab
le 4
)
(3) P
ande
(200
3, A
ER
)
Eco
nom
ics
270c
: Lec
ture
630
Eco
nom
ics
270c
: Lec
ture
631
�U
nder
a w
ide
rang
e of
theo
ries,
the
iden
tity
(cas
te,
relig
ion,
gen
der,
etc.
) of l
egis
lato
rs s
houl
d no
t mat
ter f
or
publ
ic p
olic
y ch
oice
s
�P
oliti
cian
s ar
e ac
coun
tabl
e to
the
sam
e vo
ters
, and
m
odel
s as
sum
e th
ey tr
y to
win
the
mos
t vot
es p
ossi
ble
(3) P
ande
(200
3, A
ER
)
Eco
nom
ics
270c
: Lec
ture
632
�U
nder
a w
ide
rang
e of
theo
ries,
the
iden
tity
(cas
te,
relig
ion,
gen
der,
etc.
) of l
egis
lato
rs s
houl
d no
t mat
ter f
or
publ
ic p
olic
y ch
oice
s
�P
oliti
cian
s ar
e ac
coun
tabl
e to
the
sam
e vo
ters
, and
m
odel
s as
sum
e th
ey tr
y to
win
the
mos
t vot
es p
ossi
ble
�W
ith s
trong
par
ties
that
can
com
mit
to a
n el
ecto
ral
plat
form
, the
legi
slat
or h
as li
mite
d ro
om fo
r man
euve
r--
A fi
ndin
g th
at id
entit
y m
atte
rs !
impe
rfect
pol
icy
com
mitm
ent o
n th
e pa
rt of
pol
itica
l par
ties
--M
any
mod
els
of e
lect
oral
com
petit
ion
assu
me
full
polic
y co
mm
itmen
t by
polit
ical
par
ties
(3) P
ande
(200
3, A
ER
)
Eco
nom
ics
270c
: Lec
ture
633
Eco
nom
ics
270c
: Lec
ture
634
Eco
nom
ics
270c
: Lec
ture
635
Eco
nom
ics
270c
: Lec
ture
636
Eco
nom
ics
270c
: Lec
ture
637
�W
hat a
re th
e lo
ng-r
un im
plic
atio
ns o
f pol
icie
s th
at c
reat
e re
nts
to g
roup
mem
bers
hip?
Cou
ld th
is s
low
dow
n th
e pr
oces
s of
cre
atin
g a
mor
e ho
mog
eneo
us s
ocie
ty?
--Th
ere
are
stro
ng in
cent
ives
to m
aint
ain
an S
C/S
T id
entit
y in
Indi
a, g
iven
the
empl
oym
ent a
nd s
choo
ling
adva
ntag
es
(3) P
ande
(200
3, A
ER
)
Eco
nom
ics
270c
: Lec
ture
638
�W
hat a
re th
e lo
ng-r
un im
plic
atio
ns o
f pol
icie
s th
at c
reat
e re
nts
to g
roup
mem
bers
hip?
Cou
ld th
is s
low
dow
n th
e pr
oces
s of
cre
atin
g a
mor
e ho
mog
eneo
us s
ocie
ty?
--Th
ere
are
stro
ng in
cent
ives
to m
aint
ain
an S
C/S
T id
entit
y in
Indi
a, g
iven
the
empl
oym
ent a
nd s
choo
ling
adva
ntag
es
�C
ontra
st th
is w
ith th
e �n
atio
n-bu
ildin
g�ap
proa
ch ta
ken
in
Tanz
ania
afte
r ind
epen
denc
e, s
tudi
ed in
Mig
uel (
2004
, W
orld
Pol
itics
)(3) P
ande
(200
3, A
ER
)
Eco
nom
ics
270c
: Lec
ture
639
�W
hat a
re th
e lo
ng-r
un im
plic
atio
ns o
f pol
icie
s th
at c
reat
e re
nts
to g
roup
mem
bers
hip?
Cou
ld th
is s
low
dow
n th
e pr
oces
s of
cre
atin
g a
mor
e ho
mog
eneo
us s
ocie
ty?
--Th
ere
are
stro
ng in
cent
ives
to m
aint
ain
an S
C/S
T id
entit
y in
Indi
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