development economics professor ted miguel department...
TRANSCRIPT
![Page 1: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/1.jpg)
Econ
omic
s 27
0cD
evel
opm
entE
cono
mic
s
Pro
fess
or T
ed M
igue
lD
epar
tmen
t of E
cono
mic
sU
nive
rsity
of C
alifo
rnia
, Ber
kele
y
![Page 2: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/2.jpg)
Econ
omic
s 27
0cG
radu
ate
Dev
elop
men
t Eco
nom
ics
Lect
ure
5 �
Febr
uary
13,
200
7
![Page 3: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/3.jpg)
Eco
nom
ics
270c
: Lec
ture
53
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)
![Page 4: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/4.jpg)
Eco
nom
ics
270c
: Lec
ture
54
�R
efer
ee re
port
#2 d
ue to
day
at th
e en
d of
cla
ss
![Page 5: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/5.jpg)
Eco
nom
ics
270c
: Lec
ture
55
![Page 6: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/6.jpg)
Eco
nom
ics
270c
: Lec
ture
56
(1) O
verv
iew
of d
emoc
racy
and
dev
elop
men
t(2
) Bes
ley
and
Bur
gess
(200
2)(3
) Khw
aja
and
Mia
n(2
006)
Lect
ure
5 ou
tline
![Page 7: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/7.jpg)
Eco
nom
ics
270c
: Lec
ture
57
�M
assi
ve li
tera
ture
in e
cono
mic
s an
d po
litic
al s
cien
ce
�C
onsi
der S
ub-S
ahar
an A
frica
�s d
emoc
ratiz
atio
n w
ave
sinc
e 19
91 �
will
this
hel
p / h
inde
r eco
nom
ic g
row
th?
(1) D
emoc
racy
and
dev
elop
men
t
![Page 8: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/8.jpg)
Eco
nom
ics
270c
: Lec
ture
58
�M
assi
ve li
tera
ture
in e
cono
mic
s an
d po
litic
al s
cien
ce
�C
onsi
der S
ub-S
ahar
an A
frica
�s d
emoc
ratiz
atio
n w
ave
sinc
e 19
91 �
will
this
hel
p / h
inde
r eco
nom
ic g
row
th?
�H
ow d
o w
e de
fine
a �d
emoc
racy
�?--
Hol
ding
ele
ctio
ns in
not
eno
ugh
--Fr
eedo
m H
ouse
mea
sure
: �P
oliti
cal r
ight
s ar
e rig
hts
to
parti
cipa
te m
eani
ngfu
lly in
the
polit
ical
pro
cess
. In
a de
moc
racy
this
mea
ns th
e rig
ht o
f all
adul
ts to
vot
e an
d co
mpe
te fo
r pub
lic o
ffice
, and
for e
lect
ed re
pres
enta
tives
to
hav
e a
deci
sive
vot
e on
pub
lic p
olic
ies�
(1) D
emoc
racy
and
dev
elop
men
t
![Page 9: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/9.jpg)
Eco
nom
ics
270c
: Lec
ture
59
�H
ow d
o w
e qu
antif
y th
e ex
tent
of d
emoc
racy
? Th
ere
is
clea
rly a
con
tinuu
m fr
om d
emoc
racy
to a
utoc
racy
--E
.g.,
the
rulin
g pa
rty m
ay m
anip
ulat
e th
e m
edia
, in
timid
ate
oppo
sitio
n su
ppor
ters
, int
erfe
re w
ith th
e el
ecto
ral c
omm
issi
on�s
vot
er ro
lls, e
ngag
e in
bal
lot f
raud
. R
ussi
a to
day
is m
ore
dem
ocra
tic th
an th
e S
ovie
t Uni
on,
but n
ot a
s de
moc
ratic
as
Sw
eden
(1) D
emoc
racy
and
dev
elop
men
t
![Page 10: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/10.jpg)
Eco
nom
ics
270c
: Lec
ture
510
�H
ow d
o w
e qu
antif
y th
e ex
tent
of d
emoc
racy
? Th
ere
is
clea
rly a
con
tinuu
m fr
om d
emoc
racy
to a
utoc
racy
--E
.g.,
the
rulin
g pa
rty m
ay m
anip
ulat
e th
e m
edia
, in
timid
ate
oppo
sitio
n su
ppor
ters
, int
erfe
re w
ith th
e el
ecto
ral c
omm
issi
on�s
vot
er ro
lls, e
ngag
e in
bal
lot f
raud
. R
ussi
a to
day
is m
ore
dem
ocra
tic th
an th
e S
ovie
t Uni
on,
but n
ot a
s de
moc
ratic
as
Sw
eden
�Th
ere
are
have
bee
n la
rge
aggr
egat
e m
ovem
ents
in
thes
e m
easu
res.
In th
e 19
70s
aver
age
leve
ls o
f de
moc
racy
fell
shar
ply
in A
frica
and
Lat
in A
mer
ica,
and
in
crea
sed
agai
n in
the
late
198
0s /
early
199
0s th
ere,
as
wel
l as
in E
aste
rn E
urop
e. R
ever
sals
are
pos
sibl
e
(1) D
emoc
racy
and
dev
elop
men
t
![Page 11: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/11.jpg)
Eco
nom
ics
270c
: Lec
ture
511
�P
oliti
cal r
ight
s/fre
edom
s ar
e cr
itica
l for
hum
an w
elfa
re
but w
hat i
mpa
ct o
n ec
onom
ic d
evel
opm
ent?
(1) D
emoc
racy
and
dev
elop
men
t
![Page 12: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/12.jpg)
Eco
nom
ics
270c
: Lec
ture
512
�P
oliti
cal r
ight
s/fre
edom
s ar
e cr
itica
l for
hum
an w
elfa
re
but w
hat i
mpa
ct o
n ec
onom
ic d
evel
opm
ent?
�A
trad
e-of
f bet
wee
n de
moc
racy
and
dev
elop
men
t?
--D
o de
moc
raci
es c
onsu
me
too
muc
h?--
Red
istri
bute
too
muc
h? (P
erss
onan
d Ta
belli
ni19
94)
(1) D
emoc
racy
and
dev
elop
men
t
![Page 13: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/13.jpg)
Eco
nom
ics
270c
: Lec
ture
513
�P
oliti
cal r
ight
s/fre
edom
s ar
e cr
itica
l for
hum
an w
elfa
re
but w
hat i
mpa
ct o
n ec
onom
ic d
evel
opm
ent?
�A
trad
e-of
f bet
wee
n de
moc
racy
and
dev
elop
men
t?
--D
o de
moc
raci
es c
onsu
me
too
muc
h?--
Red
istri
bute
too
muc
h? (P
erss
onan
d Ta
belli
ni19
94)
--Is
dem
ocra
cy to
o un
stab
le in
poo
r cou
ntrie
s?E
.g. I
raq
2001
ver
sus
2007
. Hun
tingt
on (1
968)
:�P
oliti
cal p
artic
ipat
ion
mus
t be
held
dow
n, a
t lea
st
tem
pora
rily,
in o
rder
to p
rom
ote
econ
omic
dev
elop
men
t��T
he m
ost i
mpo
rtant
pol
itica
l dis
tinct
ion
amon
g co
untri
es
conc
erns
not
thei
r for
m o
f gov
ernm
ent,
bit t
heir
degr
ee o
f go
vern
men
t�
(1) D
emoc
racy
and
dev
elop
men
t
![Page 14: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/14.jpg)
Eco
nom
ics
270c
: Lec
ture
514
�Th
ere
are
few
gen
eral
ans
wer
s he
re: d
icta
tors
hips
may
pr
omot
e th
e in
tere
sts
of d
iffer
ent g
roup
s �
left-
win
g ve
rsus
righ
t-win
g go
vern
men
ts
(1) D
emoc
racy
and
dev
elop
men
t
![Page 15: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/15.jpg)
Eco
nom
ics
270c
: Lec
ture
515
�A
mar
tya
Sen
(198
1) P
over
ty a
nd F
amin
es: A
n E
ssay
on
Ent
itlem
ent a
nd D
epriv
atio
n
�S
tyliz
ed fa
ct: n
o fu
ll-bl
own
fam
ines
in a
dem
ocra
cy
(1) T
he v
irtue
s of
dem
ocra
cy
![Page 16: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/16.jpg)
Eco
nom
ics
270c
: Lec
ture
516
�A
mar
tya
Sen
(198
1) P
over
ty a
nd F
amin
es: A
n E
ssay
on
Ent
itlem
ent a
nd D
epriv
atio
n
�S
tyliz
ed fa
ct: n
o fu
ll-bl
own
fam
ines
in a
dem
ocra
cy(1
) Pol
icy
mak
ers
have
bet
ter i
nfor
mat
ion
/ fre
e pr
ess
(2) M
ore
acco
unta
bilit
y / e
lect
ions
(1) T
he v
irtue
s of
dem
ocra
cy
![Page 17: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/17.jpg)
Eco
nom
ics
270c
: Lec
ture
517
�P
ost-i
ndep
ende
nce
Indi
a: n
o fa
min
es�
Pre
-inde
pend
ence
Indi
a: m
any
fam
ines
, inc
ludi
ng th
e di
sast
rous
194
3 B
enga
l Fam
ine,
1.5
-3 m
illio
n de
ad
(1) T
he v
irtue
s of
dem
ocra
cy
![Page 18: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/18.jpg)
Eco
nom
ics
270c
: Lec
ture
518
�P
ost-i
ndep
ende
nce
Indi
a: n
o fa
min
es�
Pre
-inde
pend
ence
Indi
a: m
any
fam
ines
, inc
ludi
ng th
e di
sast
rous
194
3 B
enga
l Fam
ine,
1.5
-3 m
illio
n de
ad�T
he v
ital p
robl
ems
of In
dia
are
bein
g tre
ated
by
His
M
ajes
ty�s
Gov
ernm
ent w
ith n
egle
ct, e
ven
som
etim
es
with
hos
tility
and
con
tem
pt.�
--Lo
rd W
avel
l
(1) T
he v
irtue
s of
dem
ocra
cy
![Page 19: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/19.jpg)
Eco
nom
ics
270c
: Lec
ture
519
�P
ost-i
ndep
ende
nce
Indi
a: n
o fa
min
es�
Pre
-inde
pend
ence
Indi
a: m
any
fam
ines
, inc
ludi
ng th
e di
sast
rous
194
3 B
enga
l Fam
ine,
1.5
-3 m
illio
n de
ad�T
he v
ital p
robl
ems
of In
dia
are
bein
g tre
ated
by
His
M
ajes
ty�s
Gov
ernm
ent w
ith n
egle
ct, e
ven
som
etim
es
with
hos
tility
and
con
tem
pt.�
--Lo
rd W
avel
l
�C
omm
unis
t Chi
na: m
assi
ve fa
min
e in
195
7-19
62 d
urin
g �T
he G
reat
Lea
p Fo
rwar
d�, 1
0-30
mill
ion
dead
(1) T
he v
irtue
s of
dem
ocra
cy
![Page 20: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/20.jpg)
Eco
nom
ics
270c
: Lec
ture
520
�A
n em
piric
al im
plem
enta
tion
of S
en�s
idea
s ac
ross
16
Indi
an s
tate
s 19
58-1
992
�In
dian
sta
tes
with
mor
e ac
tive
loca
l med
ia a
nd m
ore
com
petit
ive
loca
l pol
itics
resp
ond
mor
e ef
fect
ivel
y to
na
tura
l dis
aste
rs (d
roug
ht, f
lood
)
(2) B
esle
yan
d B
urge
ss (2
002,
QJE
)
![Page 21: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/21.jpg)
Eco
nom
ics
270c
: Lec
ture
521
�A
n em
piric
al im
plem
enta
tion
of S
en�s
idea
s ac
ross
16
Indi
an s
tate
s 19
58-1
992
�In
dian
sta
tes
with
mor
e ac
tive
loca
l med
ia a
nd m
ore
com
petit
ive
loca
l pol
itics
resp
ond
mor
e ef
fect
ivel
y to
na
tura
l dis
aste
rs (d
roug
ht, f
lood
)
�A
mod
el o
f pol
itica
l age
ncy:
vot
ers
seek
to re
stra
in
polit
icia
ns� m
oral
haz
ard
prob
lem
--S
trong
med
ia !
info
rmat
ion
on p
oliti
cian
act
ions
--C
lose
ele
ctio
ns !
high
er c
ost o
f ina
ctio
n fo
r pol
itici
ans
(2) B
esle
yan
d B
urge
ss (2
002,
QJE
)
![Page 22: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/22.jpg)
Eco
nom
ics
270c
: Lec
ture
522
![Page 23: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/23.jpg)
Eco
nom
ics
270c
: Lec
ture
523
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Eco
nom
ics
270c
: Lec
ture
524
![Page 25: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/25.jpg)
Eco
nom
ics
270c
: Lec
ture
525
![Page 26: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/26.jpg)
Eco
nom
ics
270c
: Lec
ture
526
![Page 27: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/27.jpg)
Eco
nom
ics
270c
: Lec
ture
527
![Page 28: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/28.jpg)
Eco
nom
ics
270c
: Lec
ture
528
![Page 29: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/29.jpg)
Eco
nom
ics
270c
: Lec
ture
529
![Page 30: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/30.jpg)
Eco
nom
ics
270c
: Lec
ture
530
�W
hat i
s th
e va
lue
of p
oliti
cal c
onne
ctio
ns?
�In
par
ticul
ar d
o fir
ms
with
�pol
itica
l tie
s� g
et m
ore
loan
s an
d / o
r les
s st
rict e
nfor
cem
ent o
f loa
ns in
Pak
ista
n du
ring
1996
-200
2?
�H
ow d
o po
litic
al c
ondi
tions
, and
in p
artic
ular
pol
itica
l ac
coun
tabi
lity,
affe
ct th
ese
patte
rns?
(3) K
hwaj
aan
d M
ian
(200
6, Q
JE)
![Page 31: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/31.jpg)
Eco
nom
ics
270c
: Lec
ture
531
�W
hat i
s th
e va
lue
of p
oliti
cal c
onne
ctio
ns?
�In
par
ticul
ar d
o fir
ms
with
�pol
itica
l tie
s� g
et m
ore
loan
s an
d / o
r les
s st
rict e
nfor
cem
ent o
f loa
ns in
Pak
ista
n du
ring
1996
-200
2?
�H
ow d
o po
litic
al c
ondi
tions
, and
in p
artic
ular
pol
itica
l ac
coun
tabi
lity,
affe
ct th
ese
patte
rns?
�A
cas
e st
udy
of th
e ba
nkin
g se
ctor
in P
akis
tan.
Top
go
vern
men
t ban
k of
ficia
ls a
re p
oliti
cal a
ppoi
ntee
s, b
ut
not s
o fo
r priv
ate
bank
s
(3) K
hwaj
aan
d M
ian
(200
6, Q
JE)
![Page 32: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/32.jpg)
Eco
nom
ics
270c
: Lec
ture
532
�W
hat i
s th
e va
lue
of p
oliti
cal c
onne
ctio
ns?
�In
par
ticul
ar d
o fir
ms
with
�pol
itica
l tie
s� g
et m
ore
loan
s an
d / o
r les
s st
rict e
nfor
cem
ent o
f loa
ns in
Pak
ista
n du
ring
1996
-200
2?
�H
ow d
o po
litic
al c
ondi
tions
, and
in p
artic
ular
pol
itica
l ac
coun
tabi
lity,
affe
ct th
ese
patte
rns?
�A
cas
e st
udy
of th
e ba
nkin
g se
ctor
in P
akis
tan.
Top
go
vern
men
t ban
k of
ficia
ls a
re p
oliti
cal a
ppoi
ntee
s, b
ut
not s
o fo
r priv
ate
bank
s--
1992
: Gov
ernm
ent b
anks
92%
of a
ll le
ndin
g19
96-2
002:
64%
of a
ll le
ndin
g
(3) K
hwaj
aan
d M
ian
(200
6, Q
JE)
![Page 33: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/33.jpg)
Eco
nom
ics
270c
: Lec
ture
533
�A
s pa
rt of
the
bank
ing
refo
rms
in th
e m
id-1
990s
, a
cent
raliz
ed c
redi
t inf
orm
atio
n bu
reau
was
dev
elop
ed a
nd
this
form
s th
e ba
sis
for t
heir
data
set
�Th
ey h
ave
the
univ
erse
of a
ll ba
nk lo
ans
in P
akis
tan
(!),
93,3
16 fi
rms,
112
,685
loan
pai
rs, o
ver 2
5 qu
arte
rs�
Dat
a on
68
priv
ate
bank
s, 2
3 go
vern
men
t ban
ks
(3) K
hwaj
aan
d M
ian
(200
6, Q
JE)
![Page 34: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/34.jpg)
Eco
nom
ics
270c
: Lec
ture
534
�A
s pa
rt of
the
bank
ing
refo
rms
in th
e m
id-1
990s
, a
cent
raliz
ed c
redi
t inf
orm
atio
n bu
reau
was
dev
elop
ed a
nd
this
form
s th
e ba
sis
for t
heir
data
set
�Th
ey h
ave
the
univ
erse
of a
ll ba
nk lo
ans
in P
akis
tan
(!),
93,3
16 fi
rms,
112
,685
loan
pai
rs, o
ver 2
5 qu
arte
rs�
Dat
a on
68
priv
ate
bank
s, 2
3 go
vern
men
t ban
ks
�Th
ey a
lso
obta
ined
a d
atab
ase
of a
ll ca
ndid
ates
in
natio
nal a
nd s
tate
ele
ctio
ns in
the
1990
s, a
nd m
atch
ed
up th
e na
mes
to th
e di
rect
ors
of p
rivat
e fir
ms.
The
se
firm
s ar
e �p
oliti
cally
con
nect
ed�
(3) K
hwaj
aan
d M
ian
(200
6, Q
JE)
![Page 35: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/35.jpg)
Eco
nom
ics
270c
: Lec
ture
535
�A
s pa
rt of
the
bank
ing
refo
rms
in th
e m
id-1
990s
, a
cent
raliz
ed c
redi
t inf
orm
atio
n bu
reau
was
dev
elop
ed a
nd
this
form
s th
e ba
sis
for t
heir
data
set
�Th
ey h
ave
the
univ
erse
of a
ll ba
nk lo
ans
in P
akis
tan
(!),
93,3
16 fi
rms,
112
,685
loan
pai
rs, o
ver 2
5 qu
arte
rs�
Dat
a on
68
priv
ate
bank
s, 2
3 go
vern
men
t ban
ks
�Th
ey a
lso
obta
ined
a d
atab
ase
of a
ll ca
ndid
ates
in
natio
nal a
nd s
tate
ele
ctio
ns in
the
1990
s, a
nd m
atch
ed
up th
e na
mes
to th
e di
rect
ors
of p
rivat
e fir
ms.
The
se
firm
s ar
e �p
oliti
cally
con
nect
ed�
--Li
kely
atte
nuat
ion
bias
tow
ards
zer
o: s
hare
d na
mes
, m
ism
atch
es /
typo
s, �c
onne
cted
� non
-pol
itici
ans
mis
sed
(3) K
hwaj
aan
d M
ian
(200
6, Q
JE)
![Page 36: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/36.jpg)
Eco
nom
ics
270c
: Lec
ture
536
![Page 37: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/37.jpg)
Eco
nom
ics
270c
: Lec
ture
537
![Page 38: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/38.jpg)
Eco
nom
ics
270c
: Lec
ture
538
![Page 39: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/39.jpg)
Eco
nom
ics
270c
: Lec
ture
539
![Page 40: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/40.jpg)
Eco
nom
ics
270c
: Lec
ture
540
![Page 41: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/41.jpg)
Eco
nom
ics
270c
: Lec
ture
541
![Page 42: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/42.jpg)
Eco
nom
ics
270c
: Lec
ture
542
![Page 43: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/43.jpg)
Eco
nom
ics
270c
: Lec
ture
543
![Page 44: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/44.jpg)
Eco
nom
ics
270c
: Lec
ture
544
![Page 45: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/45.jpg)
Eco
nom
ics
270c
: Lec
ture
545
�D
eadw
eigh
t los
s fro
m ta
x re
venu
e: 0
.15-
0.3%
of G
DP
�P
rodu
ctiv
e us
e of
the
dive
rted
fund
s (w
e ca
n�t r
ule
out
that
they
are
bei
ng u
sed
prod
uctiv
ely)
: 1.9
% o
f GD
P�
Bro
ader
impa
cts
on fi
rm s
trate
gy, e
xit a
nd e
ntry
de
cisi
ons,
mar
k-up
s, re
nt-s
eeki
ng �i
nves
tmen
ts� o
f tim
e an
d re
sour
ces:
cou
ld b
e m
uch
larg
er
The
cost
s of
pol
itica
l inf
luen
ce /
corru
ptio
n
![Page 46: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/46.jpg)
Eco
nom
ics
270c
: Lec
ture
546
Whi
tebo
ard
#1
![Page 47: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/47.jpg)
Eco
nom
ics
270c
: Lec
ture
547
Whi
tebo
ard
#2
![Page 48: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/48.jpg)
Eco
nom
ics
270c
: Lec
ture
548
Whi
tebo
ard
#3
![Page 49: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/49.jpg)
Eco
nom
ics
270c
: Lec
ture
549
Whi
tebo
ard
#4
![Page 50: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/50.jpg)
Eco
nom
ics
270c
: Lec
ture
550
Whi
tebo
ard
#5
![Page 51: Development Economics Professor Ted Miguel Department …webfac/emiguel/e270c_s07/lecture5.pdfMicrosoft PowerPoint - econ270c-07_ppt5.ppt Created Date: 2/26/2007 11:57:07 PM](https://reader034.vdocuments.mx/reader034/viewer/2022052014/602bf5c477e58a3d526effcf/html5/thumbnails/51.jpg)
Eco
nom
ics
270c
: Lec
ture
551