This innovative new text from Jeffrey Sachs and Xiokai Yang introduces students to development economics from the perspectives of inframarginal analysis and marginal analysis. The book demonstrates how the new-found emphasis on inframarginal analysis has influenced a shift back to an interest in Classical Economics from Neoclassical Economics. Inframarginal Analysis vs. Marginal Analysis is presented as a consistent theoretical framework throughout. Shows how the relationship of Inframarginal Analysis to Marginal Analysis has influenced the shift back to an interest in Classical Economics from Neoclassical Economics with regard to economic development. Allows economists to reduce their overall reliance on marginal analysis, which may be less relevant to development economics than it is to the economics of development countries. Brings considerable analytic machinery to bear on important problems. A focus on institutions and transaction costs that is very relevant to development economics. Offers a thorough analysis of trade (CHs. 3 - 7) and macroeconomics (CHs. 16 - 19), both of which are not dealth with in depth by comparable textbooks.

This innovative new text from Jeffrey Sachs and Xiokai Yangintroduces students to development economics from the perspectivesof inframarginal analysis and marginal analysis. The bookdemonstrates how the new-found emphasis on inframarginal analysishas influenced a shift back to an interest in Classical Economicsfrom Neoclassical Economics.* * Inframarginal Analysis vs. Marginal Analysis is presented as aconsistent theoretical framework throughout.* Shows how the relationship of Inframarginal Analysis toMarginal Analysis has influenced the shift back to an interest inClassical Economics from Neoclassical Economics with regard toeconomic development.* Allows economists to reduce their overall reliance on marginalanalysis, which may be less relevant to development economics thanit is to the economics of development countries.* Brings considerable analytic machinery to bear on importantproblems.* A focus on institutions and transaction costs that is veryrelevant to development economics.* Offers a thorough analysis of trade (CHs. 3 - 7) andmacroeconomics (CHs. 16 - 19), both of which are not dealth with indepth by comparable textbooks.

Preface.1. Introduction.Part I: Geography and Microeconomic Mechanisms for EconomicDevelopment:.2. Geography and Economic Development.3. Driving Force I: Exogenous Comparative Advantage and TradingEfficiency.4. Driving Force II: Endogenous Comparative Advantage andTrading Efficiency.5. Driving Force III: Economies of Scale and TradingEfficiency.6. Coexistence of Endogenous and Exogenous ComparativeAdvantages and Patterns of Development and Trade.7. Structural Changes, Trade, and Economic Development.Part II: The Institution of the Firm, Endogenous TransactionCosts, and Economic Development:.8. Economic Development, the Institution of the Firm, andEntrepreneurship.9. Endogenous Transaction Costs, Contract, and EconomicDevelopment.10. Transaction Risk, Property Rights, Insurance, and EconomicDevelopment.Part III: Urbanization and Industrialization:.11. Urbanization, Dual Structure between Urban and Rural Areasand Economic Development.12. Industrialization, Structural Changes, Economic Developmentand Division of Labor in Roundabout Production.Part IV: Dynamic Mechanisms for EconomicDevelopment:.13. Neoclassical Models of Economic Growth.14. Economic Development Generated by Endogenous Evolution inDivision of Labor.15. Social Experiments and Evolution of Knowledge of EconomicDevelopment.Part V: Macroeconomics of Development:.16. Investment, Saving, and Economic Development.17. Money, Division of Labor, and Economic Development.18. Endogenous Business Cycles, Cyclical Unemployment, andEndogenous, Long-run Growth.19. Economic Transition.References.Index.