1-Intro to Development Models

8/19/2019 1-Intro to Development Models

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Economic Development Models

Rustam JamilovFor STG 22&23

Week 1, Class 1

Azerbaijan State Economic University

Lecture 1. Economic Development Models.© Rustam Jamilov


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Me, Myself, and I

• What I do• Research; Teach; Write

• Currently – I work at the Central Bank of Azerbaijan, Department

of Research

– Teach at ASEU (to you) – Write Columns for the Hungarian “CEU Weekly”

– Blog at www.bakuviews.blogspot.com

• Education – CEU Business School, Hungary; Bocconi University,

Italy; Dartmouth College, USA

• Past – A lot of stuff; FLEX Alumnus; School #134 Alumnus



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Why Are We Here?

Tell us your name

And what you do/where you work



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Let’s Play a Game!

I have one chocolate

Which I want to sell

The final price depends on youThe highest bidder

Will win!



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Let’s Play…Another Game!

I have one chocolate

Which I want to sell

I bought it for AZN1The final price depends on you

The highest bidder

Will win!



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What Just Happened!?

• We have just modeled an “interpersonal” market

• With…

– the supply side (me)

– the demand side (you)

– Pattern of trade (between individual people; teacher-student)

– Perfect competition

– Terms of trade (final price of chocolate)

– Gains from trade (chocolate-price for you; price-costs of

chocolate for me) – Information symmetry…and asymmetry

– Total welfare (Your utility from chocolate plus my profit)

– Discrimination and inequality (winners: buyer and seller;“losers”: everyone else)



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Syllabus Discussion

Course Objectives

Material

GradingCourse Requirements

Weekly Homework Essays

Final PresentationFinal Exam

Attendance



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Introduction to Development ModelsWhat’s up with the Global Economy?



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One Of The Worst Recessions


Source: Link

http://www.nytimes.com/interactive/2010/05/02/weekinreview/02marsh.htmlhttp://www.nytimes.com/interactive/2010/05/02/weekinreview/02marsh.html


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No Growth



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No Credit – No Party



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No Houses – Still No Party



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Voluntary Delusion



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Asian Ex-Tiger



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Debt Overextension



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Growing By Borrowing?



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I Win, You Lose, We Lose


Source: Link

http://www.voxeu.org/article/new-post-crisis-global-economic-geographyhttp://www.voxeu.org/article/new-post-crisis-global-economic-geography


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Decomposing Our Growth



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New Global Economic Architecture?


Source: Dani Rodrik Blog


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Yes

• Next lecture: New Global Economic

Architecture

• Friday, 17 September, 2012

• Time: 11:45-13:20

• Don’t be late!


Documents

1-Intro to Development Models