Purchasing power parity in Indonesia
Going forward we will try to say a little bit about growth strategy, growth models and empirical evidence during each class. This should allow you to think about your case study country earlier: each case study country requires three things, 1) a growth incidence curve or data on povcalnet.org, to be listed on the “convergence big time” Table C-2, and a previous country case study paper (often a growth diagnostics paper). There are “work arounds” for these requirements: if you country does not have much data you can find a twin or “comparator” country that does have data. For example, Ethiopia has lots of data, but Eritrea has very little, but enough to compare the two. The main endogenous growth model we will study is the Barro model with Government, see PS2A.