The Lewis Model: A 60-Year Retrospective

2014 ◽  
Vol 28 (3) ◽  
pp. 71-88 ◽  
Author(s):  
Douglas Gollin
Keyword(s):  
Development Economics ◽  
Economic Activity ◽  
Development Strategies ◽  
Policy Implications ◽  
Poor Countries ◽  
Current Thinking ◽  
Per Capita ◽  
The Difference ◽  
Rich Countries ◽  
Proximate Explanation

The Lewis model has remained, for more than half a century, one of the dominant theories of development economics. This paper argues that the power of the model lies in the simplicity of its central insight: that poor countries contain enclaves of economic activity just as rich countries contain enclaves of poverty; and that a proximate explanation for the difference in income per capita across countries is that there are large differences in the relative sizes of their “modern” and “traditional” sectors. But while the Lewis model contains a powerful and compelling macro narrative, its details have proved somewhat elusive to scholars and students who have followed, and its policy implications are unclear. This paper identifies several key insights of the Lewis model, discusses several different interpretations of the model, and then reviews modern evidence for the central propositions of the model. In closing, we consider the relevance of Lewis for current thinking about development strategies and policies.

scholarly journals Asymmetry (inequality) of spatial development in Russia

2021 ◽  
Vol 885 (1) ◽  
pp. 012013
Author(s):  
V G Ayusheeva ◽  
V S Batomunkuev ◽  
N R Zangeeva
Keyword(s):  
Statistical Analysis ◽  
Economic Activity ◽  
Correlation Coefficients ◽  
Uneven Development ◽  
Economic Conditions ◽  
Objective Reality ◽  
Local Conditions ◽  
Per Capita ◽  
The Difference ◽  
Regions Of Russia

Abstract The uneven development of countries and regions is one of the major topics of geography. Since its subject, as defined by N N Baransky, is the difference from place to place. Considering economic activity, socio-economic processes and indicators in the territorial aspect, we are confronted with the inequality of their distribution across the territory. This problem is particularly relevant, because the objective reality, due to the diversity and uniqueness of local conditions, as well as historical, economic, political reasons. Currently, there are various approaches to measuring socio-economic asymmetry. The “centre-periphery” model is remarkably resilient and flexible, and is able to maintain its properties under different socio-economic conditions. Based on statistical analysis (1995-2018), GRP per capita by regions of Russia was examined, as well as correlation coefficients.

scholarly journals Transitional dynamics of the saving rate and economic growth

2021 ◽  
pp. 1-24
Author(s):  
Markus Brueckner ◽  
Tomoo Kikuchi ◽  
George Vachadze
Keyword(s):  
Growth Rate ◽  
Time Series Data ◽  
Income Elasticity ◽  
Gdp Per Capita ◽  
Series Data ◽  
Supporting Evidence ◽  
Saving Rate ◽  
Poor Countries ◽  
Per Capita ◽  
Rich Countries

Abstract We estimate the relationship between GDP per capita growth and the growth rate of the national saving rate using a panel of 130 countries over the period 1960–2017. We find that GDP per capita growth increases (decreases) the growth rate of the national saving rate in poor countries (rich countries), and a higher credit-to-GDP ratio decreases the national saving rate as well as the income elasticity of the national saving rate. We develop a model with a credit constraint to explain the growth-saving relationship by the saving behavior of entrepreneurs at both the intensive and extensive margins. We further present supporting evidence for our theoretical findings by utilizing cross-country time series data of the number of new businesses registered and the corporate saving rate.

scholarly journals Economic Complexity: Correlations between Gross Domestic Product and Fitness

Entropy ◽  
2018 ◽  
Vol 20 (10) ◽  
pp. 766 ◽  
Author(s):  
Gianni Vinci ◽  
Roberto Benzi
Keyword(s):  
Gross Domestic Product ◽  
Causal Relation ◽  
Domestic Product ◽  
Driving Factor ◽  
Poor Countries ◽  
Economic Complexity ◽  
Reasonable Evidence ◽  
Per Capita ◽  
Takens Theorem ◽  
Rich Countries

In this paper we study the causal relation between country Economic Fitness F c and its Gross Domestic Product per capita ( G D P ). Using the Takens’ theorem, as first suggested in (Sugihara, G. et al. 2012), we show that there exists a reasonable evidence of causal correlation between G D P and F c for relatively rich countries. This is not the case for relatively poor countries where F c and G D P do not show any significant causal relation. We also present some preliminary results to understand whether G D P or F c are driving factor for economic growth.

scholarly journals Conjecture sur le comportement de l’impôt sur le revenu des particuliers

2009 ◽  
Vol 49 (4) ◽  
pp. 549-558
Author(s):  
Michel Boucher ◽  
Jean-Guy Lebel
Keyword(s):  
Theoretical Model ◽  
Economic Activity ◽  
Income Tax ◽  
Income Elasticity ◽  
Personal Income ◽  
Personal Income Tax ◽  
Taxation Rate ◽  
Per Capita ◽  
The Difference ◽  
Global Increase

Abstract This fiscal essay tries to specify the economic variables which have an effect upon the personal income tax during a business cycle. After clearing out the concept of trend elasticity and cyclical elasticity, we propose a model based on the concept of elasticity which will permit us to see the income increases due to the overall increase in employment (or a decrease in the rate of unemployment), and those produced by the global increase in wealth (such as the increase in per capita revenue due to productivity, inflation and so on). Then we apply this model to the federal personal income tax collected in Quebec for ten income classes and we find that there is a difference between the average taxation rate due to the increment of employment and the average taxation rate due to wealth increase and consequently at the elasticity level also. However, the difference is not statistically significant. So, our theoretical model and its application explains partly why the income elasticity of the personal income tax appears to be greater in periods of decline in economic activity and tends to abate fairly sharply as expansionary momentum is restored.

The Problem of Agricultural Taxation in West Pakistan and an Alternative Solution: A Comment (Notes & Comments)

1973 ◽  
Vol 12 (4) ◽  
pp. 433-437
Author(s):  
Sarfaraz Khan Qureshi
Keyword(s):  
Capita Income ◽  
Agricultural Sector ◽  
Central Government ◽  
Policy Implications ◽  
Farm Size ◽  
Per Capita Income ◽  
Tax Rate ◽  
Water Rate ◽  
Per Capita ◽  
The Government

In the Summer 1973 issue of the Pakistan Development Review, Mr. Mohammad Ghaffar Chaudhry [1] has dealt with two very important issues relating to the intersectoral tax equity and the intrasectoral tax equity within the agricultural sector in Pakistan. Using a simple criterion for vertical tax equity that implies that the tax rate rises with per capita income such that the ratio of revenue to income rises at the same percentage rate as per capita income, Mr. Chaudhry found that the agricultural sector is overtaxed in Pakistan. Mr. Chaudhry further found that the land tax is a regressive levy with respect to the farm size. Both findings, if valid, have important policy implications. In this note we argue that the validity of the findings on intersectoral tax equity depends on the treatment of water rate as tax rather than the price of a service provided by the Government and on the shifting assumptions regard¬ing the indirect taxes on imports and domestic production levied by the Central Government. The relevance of the findings on the intrasectoral tax burden would have been more obvious if the tax liability was related to income from land per capita.

Ronald Coase and the Difference between Markets and Firms

2018 ◽  
Author(s):  
Abraham A. Singer
Keyword(s):  
Transaction Cost ◽  
Economic Activity ◽  
Transaction Cost Economics ◽  
Theory Of The Firm ◽  
Tabular Form ◽  
Specific Investment ◽  
The Difference ◽  
Marginal Revolution ◽  
The Way

This chapter reviews the development of transaction cost economics and unpacks its theory of the firm. The chapter begins with the marginal revolution in economics and how it altered the way economists understood the corporation. It then reviews the work of Ronald Coase and Oliver Williamson, explaining how they provided a novel account of firms. Transaction cost economics emphasizes how firms use hierarchy and bureaucracy to overcome problems of opportunism and asset-specific investment to coordinate some types of economic activity more efficiently than markets can. The transaction cost account of the corporation’s productivity component is shown in tabular form in comparison with its historical forerunners reviewed in the previous chapter.

Health and healthcare

2017 ◽  
Author(s):  
Jan Abel Olsen
Keyword(s):  
Production Function ◽  
Strong Association ◽  
International Comparisons ◽  
Healthcare Spending ◽  
Health Production ◽  
Poor Countries ◽  
Health Production Function ◽  
Important Message ◽  
Rich Countries

Chapter 1 provides a contextual frame for the book. An inquiry into the key concepts of health and healthcare is followed by an illustration of the general health production function, that is, the association between increasing healthcare inputs and resulting health outcomes. The important message is the pattern of positive but diminishing effects of healthcare on health: more healthcare improves health, but at a diminishing rate. The production function is also illustrated at the macro level: when considering the poor countries of the world, a strong association is observed between increased healthcare spending and the country’s life expectancy. However, among rich countries we observe a strongly diminishing effect of increased healthcare spending. Some further international comparisons are included to show that the richer a country gets, the higher the proportion of wealth it spends on healthcare.

Ocular surface temperature differences in glaucoma

2021 ◽  
pp. 112067212110237
Author(s):  
Ari Leshno ◽  
Ori Stern ◽  
Yaniv Barkana ◽  
Noa Kapelushnik ◽  
Reut Singer ◽  
...  
Keyword(s):  
Surface Temperature ◽  
Thermal Imaging ◽  
Ocular Surface ◽  
Open Angle Glaucoma ◽  
Tissue Temperature ◽  
Body Temperatures ◽  
Current Thinking ◽  
Imaging Camera ◽  
The Mean ◽  
The Difference

Purpose: Accumulating evidence suggests that neuroinflammation and immune response are part of the sequence of pathological events leading to optic nerve damage in glaucoma. Changes in tissue temperature due to inflammation can be measured by thermographic imaging. We investigated the ocular surface temperature (OST) profile of glaucomatous eyes to better understand the pathophysiology of these conditions. Methods: Subjects diagnosed with glaucoma (primary open angle glaucoma [POAG] or pseudo exfoliation glaucoma [PXFG]) treated at the Sam Rothberg Glaucoma Center (11/2019–11/2020.) were recruited. Healthy subjects with no ocular disease served as controls. The Therm-App thermal imaging camera was used for OST acquisition. Room and body temperatures were recorded, and the mean temperatures of the medial cantus, lateral cantus, and cornea were calculated with image processing software. Results: Thermographic images were obtained from 52 subjects (52 eyes: 25 POAG and 27 PXFG) and 66 controls (66 eyes). Eyes with glaucoma had a significantly higher OST compared to controls (mean 0.9 ± 0.3°C, p < 0.005). The difference between the two groups remained significant after adjustment for age, sex, intraocular pressure (IOP) and room and body temperatures. Lens status and topical IOP-lowering medication did not significantly affect OST. A subgroup analysis revealed that the OST was higher among eyes with POAG compared to eyes with PXFG, but not significantly. Conclusions: Differences in the OST between glaucomatous and normal eyes strengthens current thinking that inflammation affects the pathophysiology of glaucoma. Longitudinal studies are warranted to establish the prognostic value of thermographic evaluations in these patients.

Governance of Development Assistance: Issues and Challenges

2017 ◽  
Vol 63 (2) ◽  
pp. 252-264
Author(s):  
Navreet Kaur ◽  
Lhoukhokai Sitlhou
Keyword(s):  
Sustainable Development ◽  
Development Process ◽  
Good Governance ◽  
Development Assistance ◽  
Target Population ◽  
Poor Countries ◽  
Disaster Assistance ◽  
Governance Practices ◽  
Bilateral Assistance ◽  
Rich Countries

Good governance emphasises upon efficient and effective institutional mechanism, greater transparency, people’s participation, citizen-centric services and accountability. These reforms are not only limited to national governance practices but also applicable to distribution, disbursement and effectiveness of development assistance. The objective of development assistance is to provide opportunities to needy, deprived and disadvantageous sections of the society. The available data on development assistance clearly demonstrate that rich countries, Development Assistance Countries (DACs) provide financial assistance to poor countries and it has reached US$100 billion in recent years. Non-DAC bilateral assistance (NDBA) is more than US$8 billion in Office of Disaster Assistance (ODA) and US$5 billion annually in country programmable aid (CPA). Private aid (PrA) from DAC members contribute between US$58 billion and 68 billion per year. Total aid flows to developing countries currently amount to around US$180 billion annually. Multilateral aid agencies (around 230) outnumber donors and recipients combined. But the harsh reality is high percentage of illiteracy, high child mortality, gender inequality, prevalence of corruption and exclusion of needy people from the development process. The examination of the process and procedures involved in development process revealed that there are many challenges in the process adopted for allocation, methodological limitations, evaluation limitation, lack of coordination among multiple agencies, political compulsions of donor and recipient countries, transparency, accountability and multidimensional global financial markets compulsions. Certain measures can make development more inclusive and sustainable. Collective efforts of all agencies are the need of the hour to achieve the targets of sustainable development. Coordination among multiple agencies, capacity building of target population and involvement of private agencies in the development process will pave the way for sustainable development.

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