JAMP  Vol.5 No.9 , September 2017
A Model of Optimal Development for an Economy with an Informal Sector
Abstract: The paper addresses the question of optimal development of a developing economy. The framework presented, it is believed, can be of help in thinking about policies relating, inter alia, to population growth, inter-sectoral migration, agriculture-industry relationship, wages in different sectors, and income distribution in an inter-connected way in the context of optimal development of an economy with an informal sector.
Cite this paper: Bhattacharya, P. (2017) A Model of Optimal Development for an Economy with an Informal Sector. Journal of Applied Mathematics and Physics, 5, 1808-1824. doi: 10.4236/jamp.2017.59153.

[1]   Sen, A.K. (1960) Choice of Techniques: An Aspect of the Theory of Planned Economic Development. Basil Blackwell, Oxford.

[2]   Dixit, A.K. (1968) Optimal Development in the Labour-Surplus Economy. Review of Economic Studies, 35, 23-34.

[3]   Stern, N.H. (1972) Optimum Development in a Dual Economy. Review of Economic Studies, 39, 171-184.

[4]   Kuznets, S. (1955) Economic Growth and Income Inequality. American Economic Review, 45, 1-28.

[5]   Atkinson, A.B. (1969) The Timescale of Economic Models: How Long Is the Long Run? Review of Economic Studies, 36, 137-152.

[6]   Bhattacharya, P.C. (2015) A Model of Optimal Development. Heriot-Watt University Discussion Paper in Economics.

[7]   Bhattacharya, P.C. (1994) A Multi-Sector Model of LDC. Scottish Journal of Political Economy, 41, 225-255.

[8]   Bhattacharya, P.C. (2011) Informal Sector, Income Inequality and Economic Development. Economic Modelling, 28, 820-830.

[9]   Bhattacharya, P.C. (1993) Rural-Urban Migration in Economic Development. Journal of Economic Survey, 7, 243-281.

[10]   Bhattacharya, P.C. (1998) The Informal Sector and Rural-to-Urban Migration: Some Indian Evidence. Economic and Political Weekly, 33 1255-1257, 1259-1262.

[11]   Bhattacharya, P.C. (2002) Rural-to-Urban Migration in LDCS: A Test of Two Rival Models. Journal of International Development, 14, 951-972.

[12]   Todaro, M.P. (1969) A Model of Labor Migration and Urban Unemployment in Less Developed Countries. American Economic Review, 59, 138-148.

[13]   Harris, J.R. and Todaro, M.P. (1970) Migration, Unemployment and Development: A Two-Sector Analysis. American Economic Review, 60, 126-142.

[14]   Williamson, J.G. (1988) Migration and Urbanization, In: Chenery, H. and Srinivasan, T.N., Eds., Handbook of Development Economics, North-Holland, Amsterdam, 425-465.

[15]   Anand, S. and Kanbur, S.M.R. (1993) The Kuznets Process and the Inequality-Development Relationship. Journal of Development Economic, 40, 25-52.

[16]   Alesina, A. and Rodrik, D. (1994) Distributive Politics and Economic Growth. Quarterly Journal of Economics, 109, 465-490.

[17]   Barro, R.J. (2000) Inequality and Growth in a Panel of Countries. Journal of Economic Growth, 5, 5-32.

[18]   Forbes, K.J. (2000) A Reassessment of the Relationship between Inequality and Growth. American Economic Review, 90, 869-887.