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Poverty traps and the robust political economy of development assistance

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  • Scott Beaulier
  • J. Subrick

Abstract

Robust political economy emphasizes the lack of benevolence and omniscience of would be reformers. In addition, we consider the effects of biased decision-making for the robustness of the policy implications. This paper examines the robustness of the policy implications of models based on coordination failures and poverty traps. In particular, we address the revival in ‘big push’ type models and its policy implications. We argue that attempts to promote economic development through ‘big push’ models lack robustness. Copyright Springer Science + Business Media, Inc. 2006

Suggested Citation

  • Scott Beaulier & J. Subrick, 2006. "Poverty traps and the robust political economy of development assistance," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 19(2), pages 217-226, June.
    • Handle: RePEc:kap:revaec:v:19:y:2006:i:2:p:217-226
    DOI: 10.1007/s11138-006-7349-0
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    References listed on IDEAS

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    1. Esther Duflo, 2005. "Monitoring Works: Getting Teachers to Come to School," Working Papers id:301, eSocialSciences.
    2. Edward L. Glaeser, 2005. "Paternalism and Psychology," NBER Working Papers 11789, National Bureau of Economic Research, Inc.
    3. Rodrik, Dani, 1996. "Coordination failures and government policy: A model with applications to East Asia and Eastern Europe," Journal of International Economics, Elsevier, vol. 40(1-2), pages 1-22, February.
    4. Matsuyama Kiminori, 1995. "New Goods, Market Formations, and Pitfalls of System Design," Journal of the Japanese and International Economies, Elsevier, vol. 9(4), pages 376-402, December.
    5. Hirschman,Albert O., 1981. "Essays in Trespassing," Cambridge Books, Cambridge University Press, number 9780521282437, September.
    6. Trindade, Vitor, 2005. "The big push, industrialization and international trade: The role of exports," Journal of Development Economics, Elsevier, vol. 78(1), pages 22-48, October.
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    Cited by:

    1. David S. Lucas, 2017. "Federal homelessness policy: A robust political economy approach," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(3), pages 277-303, September.
    2. David S. Lucas & Caleb S. Fuller & Ennio E. Piano & Christopher J. Coyne, 2018. "Visions of entrepreneurship policy," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 7(4), pages 336-356, November.
    3. Niclas Berggren, 2012. "Time for behavioral political economy? An analysis of articles in behavioral economics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(3), pages 199-221, September.
    4. Moberg, Lotta, 2015. "The political economy of special economic zones," Journal of Institutional Economics, Cambridge University Press, vol. 11(1), pages 167-190, March.

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