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Preface | |
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International Development Resources on the Internet | |
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Development and Growth | |
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Patterns of Development | |
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Three Vignettes | |
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Malaysia | |
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Ethiopia | |
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Ukraine | |
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Development and Globalization | |
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Rich and Poor Countries | |
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Growth and Development | |
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Diversity in Development Achievements | |
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Approaches to Development | |
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The Study of Development Economics | |
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Organization | |
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Summary | |
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Measuring Economic Growth and Development | |
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Measuring Economic Growth | |
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Measuring GDP: What Is Left Out? | |
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Exchange-Rate Conversion Problems | |
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Economic Growth around the World: A Brief Overview | |
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tared diamond: guns, germs, and steel | |
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Economic Growth, 1970-2010 | |
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What Do We Mean by Economic Development? | |
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Measuring Economic Development | |
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Human Development Defined | |
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Why Use Logarithms? | |
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What Can We Learn from the Human Development Index? | |
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Millennium Development Goals | |
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Targets of the Millennium Development Goals | |
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Is Economic Growth Desirable? | |
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Summary | |
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Economic Growth: Concepts and Patterns | |
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Divergent Patterns of Economic Growth since 1960 | |
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Botswana's Remarkable Economic Development | |
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Factor Accumulation, Productivity, and Economic Growth | |
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Calculating, Future Values, Growth Rates, and Doubling Times | |
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Saving, Investment, and Capital Accumulation | |
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Sources of Growth Analysis | |
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Characteristics of Rapidly Growing Countries | |
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Macroeconomic and Political Stability | |
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Investment in Health and Education | |
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Effective Governance and Institutions | |
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Institutions, Governance, and Growth | |
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Favorable Environment for Private Enterprise | |
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Trade, Openness, and Growth | |
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Favorable Geography | |
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Summary | |
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Theories of Economic Growth | |
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The Basic Growth Model | |
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The Harrod-Domar Growth Model | |
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The Fixed-Coefficient Production Function | |
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The Capital-Output Ratio and the Harrod-Domar Framework | |
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Strengths and Weaknesses of the Harrod-Domar Framework | |
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Economic Growth in Thailand | |
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The Solow (Neoclassical) Growth Model | |
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The Neoclassical Production Function | |
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The Basic Equations of the Solow Model | |
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The Solow Diagram | |
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Changes in the Saving Rate and Population Growth Rate in the Solow Model | |
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Population Growth and Economic Growth | |
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Technological Change in the Solow Model | |
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Strengths and Weaknesses of the Solow Framework | |
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Diminishing Returns and the Production Function | |
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Explaining Differences in Growth Rates | |
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The Convergence Debate | |
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Beyond Solow: New Approaches to Growth | |
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Summary | |
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States and Markets | |
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Development Thinking after World War II | |
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Market Failure | |
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Fundamental Changes in the 1970s and 1980s | |
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Ghana After Independence | |
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The Declining Effectiveness of Government Intervention in the Market: Korea, 1960s-2010 | |
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Structural Adjustment, the Washington Consensus, and the End of the Soviet Model | |
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Soviet Command Model to Market Economies: The Great Transition | |
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Was the Washington Consensus a Success or Failure? | |
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Summary | |
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Distribution and Human Resources | |
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Inequality and Poverty | |
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Measuring Inequality | |
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Patterns of Inequality | |
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Growth and Inequality | |
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What Else Might Cause Inequality? | |
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Why Inequality Matters | |
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Measuring Poverty | |
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Poverty Lines | |
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National Poverty Lines in Bangladesh, Mexico, and the United States | |
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Wily $1.25 a Day? | |
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Dissenting Opinions on the Extent of Absolute Poverty | |
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Who is Not Poor? | |
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Poverty Today | |
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Who Are the Poor? | |
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Living in Poverty | |
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Strategies to Reduce Poverty | |
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Growth is Good for the Poor | |
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Sometimes Growth May Not Be Enough | |
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Pro-Poor Growth | |
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Why Should Development Strategies Have a Poverty Focus? | |
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Improving Opportunities for the Poor | |
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Income Transfers and Safety Nets | |
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Global Inequality and the End of Poverty | |
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Summary | |
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Population | |
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A Brief History of World Population | |
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The Demographic Transition | |
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The Demographic Situation Today | |
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Total Fertility Rates | |
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The Demographic Future | |
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Population Momentum | |
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The Causes of Population Growth | |
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Thomas Malthus, Population Pessimist | |
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Why Birth Rates Decline | |
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Population Growth and Economic Development | |
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Population and Accumulation | |
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Population Growth, Age Structure, and Dependency Ratios | |
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Population and Productivity | |
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Population and Market Failures | |
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Population Policy | |
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Family Planning | |
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Authoritarian Approaches | |
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Missing Girls, Missing Women | |
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Population Issues for the Twenty-First Century | |
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Summary | |
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Education | |
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Trends and Patterns | |
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Stocks and Flows | |
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Boys versus Girls | |
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Schooling versus Education | |
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Education as an Investment | |
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The Rate of Return to Schooling | |
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Estimated Rates of Return | |
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First-Generation Estimates | |
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Estimating Rates of Return from Wage Equations | |
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Second-Generation Estimates | |
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Puzzles | |
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Returns to Schooling and Income Opportunities | |
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Making Schooling More Productive | |
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Underinvestment | |
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Misallocation | |
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Improving Schools | |
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Reducing the Costs of Going to School | |
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Mexico's Progresa | |
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Inefficient Use of Resources | |
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It Is about More than the Money | |
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Combating Teacher Absence | |
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Summary | |
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Health | |
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What Is Health? | |
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Life Expectancy | |
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Transitions in Global Health | |
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The Epidemiologic Transition | |
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The Determinants of Improved Health | |
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Health, Income, and Growth | |
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Income and Health | |
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How Beneficent is the Market? A Look at the Modern History of Mortality | |
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Health and Productivity | |
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Health and Investment | |
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Three Critical Diseases | |
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Malaria, Yellow Fever, and the Panama Canal | |
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HPV/AIDS | |
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HIV/AIDS, Malaria, and Tuberculosis: Some Basics | |
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Malaria | |
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Making Markets for Vaccines | |
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Tuberculosis | |
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What Works? Some Successes in Global Health | |
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Preventing HIV/AIDS in Thailand | |
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Controlling Tuberculosis in China | |
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Eradicating Smallpox | |
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Eliminating Polio in Latin America | |
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Preventing Deatlis from Diarrheal Disease | |
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Lessons Learned | |
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Health Challenges | |
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Summary | |
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Macroeconomic Policies for Development | |
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Investment and Savings | |
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Using Investment Productively: Cost-Benefit Analysis | |
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Present Value | |
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Opportunity Costs | |
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Shadow Prices | |
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Welfare Weights | |
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Barriers to Productive Public and Private Investment | |
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Barriers to Doing Business | |
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Foreign Direct Investment | |
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FDI Patterns and Products | |
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Benefits and Drawbacks of FDI | |
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FDI and Growth | |
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Policies Toward Foreign Direct Investment | |
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Savings | |
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Household Saving and Consumption | |
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Corporate Saving | |
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Government Saving | |
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Foreign Saving | |
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Summary | |
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Fiscal Policy | |
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Government Expenditures | |
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Categories of Government Expenditures | |
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Reining in Fiscal Decentralization in Brazil and China | |
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Government Revenue and Taxes | |
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Tax Rates and Smuggling: Colombia | |
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Taxes on International Trade | |
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Sales and Excise Taxes | |
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Personal and Corporate Income Taxes | |
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New Sources of Tax Revenues | |
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Changes in Tax Administration | |
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Fundamental Tax Reform | |
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Tax Administration in India and Bolivia in the 1980s | |
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Indonesian Tax Reform | |
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Taxes and Income Distribution | |
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Personal Income Taxes | |
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Taxes on Luxury Consumption | |
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Corporate Income and Property Taxes: The Incidence Problem | |
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Economic Efficiency and the Budget | |
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Sources of Inefficiency | |
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Neutrality and Efficiency: Lessons from Experience | |
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Summary | |
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Financial Development and Inflation | |
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The Functions of a Financial System | |
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Money and the Money Supply | |
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Financial Intermediation | |
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Transformation and Distribution of Risk | |
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Stabilization | |
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Inflation | |
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Inflation Episodes | |
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Hyperinflation in Peru, 1988-90 | |
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Monetary Policy and Price Stability | |
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Monetary Policy and Exchange-Rate Regimes | |
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Sources of Inflation | |
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Controlling Inflation through Monetary Policy | |
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Reserve Requirements | |
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Credit Ceilings | |
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Interest-Rate Regulation and Moral Suasion | |
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International Debt and Combating Recessions | |
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Financial Development | |
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Shallow Finance and Deep Finance | |
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Shallow Financial Strategy | |
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Deep Financial Strategy | |
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Informal Credit Markets and Micro Credits Does Micro Credit Reduce Poverty? | |
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Summary | |
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Foreign Debt and Financial Crises | |
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Advantages and Disadvantages of Foreign Borrowing | |
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Debt Sustainability | |
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Debt Indicators | |
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From Distress to Default | |
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A Short History of Sovereign Lending Default | |
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The 1980s Debt Crisis | |
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Causes of the Crisis | |
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Impact on the Borrowers | |
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Escape from the Crisis, for Some Countries | |
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The Debt Crisis in Low-Income Countries | |
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Debt Reduction in Low-Income Countries | |
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The Heavily Indebted Poor Country Initiative | |
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Odious Debt | |
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Debt Relief in Uganda | |
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Emerging Market Financial Crises | |
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Domestic Economic Weaknesses | |
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Short-Term Capital Flows | |
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Creditor Panic | |
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Model of Self-Fulfilling Creditor Panics | |
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Stopping Panics | |
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Lessons from the Crises | |
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Summary | |
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Foreign Aid | |
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Donors and Recipients | |
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What Is Foreign Aid? | |
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Who Gives Aid? | |
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The Marshall Plan | |
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The Commitment to Development Index | |
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Who Receives Foreign Aid? | |
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The Motivations for Aid | |
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China's Foreign Aid | |
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Aid, Growth, and Development | |
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View 1. Although Not Always Successful, on Average, Aid Has a Positive Impact on Economic Growth and Development | |
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Controlling River Blindness in Sub-Saharan Africa | |
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View 2. Aid Has Little or No Effect on Growth and Actually May Undermine Growth | |
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Food Aid and Food Production | |
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View 3. Aid Has a Conditional Relationship with Growth, Stimulating Growth Only Under Certain Circumstances, Such as in Countries with Good Policies or Institutions | |
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Donor Relationships with Recipient Countries | |
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The Principal-Agent Problem | |
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Conditionality | |
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Improving Aid Effectiveness | |
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Summary | |
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Managing Short-Run Crises in an Open Economy | |
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Equilibrium in a Small, Open Economy | |
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Internal and External Balance | |
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Real Versus Nominal Exchange Rates | |
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The Phase Diagram | |
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Equilibrium and Disequilibrium | |
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Pioneering Stabilization: Chile, 1973-84 | |
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Stabilization Policies | |
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Applications of the Australian Model | |
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Dutch Disease | |
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Recovering from Mismanagement: Ghana, 1983-91 | |
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Debt Repayment Crisis | |
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Stabilization Package: Inflation and a Deficit | |
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The Greek Debt Crisis of 2010-12 | |
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Drought, Hurricanes, and Earthquakes | |
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Summary | |
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Appendix to Chapter 15: National Income and the Balance of Payments | |
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Agriculture, Trade, and Sustainability | |
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Agriculture and Development | |
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Unique Characteristics of the Agricultural Sector | |
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Structural Transformation | |
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Two-Sector Models of Development | |
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The Labor Surplus Model | |
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Surplus Labor in China | |
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The Neoclassical Two-Sector Model | |
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Debates Over Surplus Labor | |
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Evolving Perspectives on the Role of Agriculture in Economic Growth and Poverty Alleviation | |
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Agriculture and Economic Growth | |
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The Nutrition Linkage to Economic Growth | |
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Agriculture and Poverty Alleviation | |
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Agricultural Growth as a Pathway out of Poverty | |
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Summary | |
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Agricultural Development: Technology, Policies, and Institutions | |
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Characteristics of Traditional Agriculture and Agricultural Systems | |
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Agricultural Systems | |
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Diagnosing the Constraints to Agricultural Development | |
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Raising the Technical Ceiling | |
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The Green Revolution | |
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Recent Trends in Agricultural Productivity | |
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A Model of Induced Technical Change in Agriculture | |
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Raising the Economic Ceiling | |
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Food Production Analysis | |
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What to Produce? The Product-Product Decision | |
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How to Produce It? The Factor-Factor Decision | |
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How Much to Produce? The Factor-Product Decision | |
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Fertilizer Subsidies in Malawi | |
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Market Access | |
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Cell Phones and Agricultural Development | |
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Institutions for Agricultural Development | |
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Land Reform | |
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The World Food Crisis of 2005-08 | |
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Causes of the Crisis | |
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Consequences of the Crisis | |
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Summary | |
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Trade and Development | |
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Trade Trends and Patterns | |
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Who Trades? | |
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Comparative Advantage | |
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The Benefits of Trade | |
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Winners and Losers | |
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Trading Primary Products | |
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Empirical Evidence on Primary Export-Led Growth | |
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Export Pessimism | |
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Declining Terms of Trade? | |
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Dutch Disease | |
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Dutch Disease: A Geometric Presentation | |
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Nigeria: A Bad Case of Dutch Disease | |
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Indonesia: Finding a Cure | |
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The Resource Trap | |
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Breaking the Resource Curse | |
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Summary | |
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Trade Policy | |
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Import Substitution | |
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Protective Tariffs | |
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Import Quotas | |
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Effective Rates of Protection | |
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Trade Protection and Politics | |
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The Two-Country Model with a Tariff | |
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Production Subsidies | |
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Exchange-Rate Management | |
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Outcomes of Import Substitution | |
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Export Orientation | |
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Removing the Bias against Exports | |
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Favoring Exports | |
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Building Export Platforms | |
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Is China's Exchange-Rate Policy Unfair? | |
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Trade Strategy and Industrial Policy | |
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Trade, Growth, and Poverty Alleviation | |
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Trade Reforms and Poverty Alleviation | |
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Key Issues on the Global Trade Agenda | |
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Increased Global Competition and the Rise of China (and India) | |
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Does Outward Orientation Create Sweatshops? | |
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Labor Activists and Labor Outcomes in Indonesia | |
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Expanding Market Access | |
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Multilateral Trade Negotiations and the WTO | |
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Temporary Migration: Another Dimension of International Trade | |
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Summary | |
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Sustainable Development | |
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Will Economic Growth Save or Destroy the Environment? | |
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Concept and Measurement of Sustainable Development | |
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Saving for a Sustainable Future | |
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The Malthusian Effect of Population Growth on Adjusted Net Savings in Ghana | |
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Market Failures | |
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Externalities and the Commons | |
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Policy Solutions | |
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Property Rights | |
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Government Regulation | |
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Taxes, Subsidies, and Payments for Environmental Services | |
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Taxing Water Pollution in Colombia | |
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Marketable Permits | |
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Informal Regulation | |
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Policy Failures | |
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Policy Failures and Deforestation in Indonesia | |
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Poverty-Environment Linkages | |
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Global Climate Change | |
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Summary | |
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Index | |