ECON 6280 Study Guide - Final Guide: Iron-Deficiency Anemia, Engel Curve, Poverty Trap
Document Summary
Duflo"s study undermines the argument that n-b poverty trap exists) -> the poor do not spend 100% of their income on food. Engel curve describes how household expenditure on a particular good/service varies with household income. Calorie engel curve high income, lower calorie consumption: economic growth has no effect on calories consumption, the calorie engel curve has decreased over time in developing countries. Substitution effect (se) more consumption of cheaper good since it has become less expensive than others. Income effect (ie) - for superior good + (consume more) or for inferior good (consume less as income goes up) When income rises by 10%, calorie intake only increases by 3. 5%, and that raises productivity only by 1. 4%. Food availability decline hypothesis hypothesis that famines are caused by lack of food availability: sen challenges this as rice availability was higher in 1943 (during the bengal famine) than in 1941 (before the famine)
