Political economy is a term used for studying production and trade, and their relations with law and government, as well as with the distribution of national income and wealth. Political economy originated in moral philosophy and it was developed in the 18th century as the study of the economies of states, or polities, hence the term political economy. In the late 19th century, the term came to replace political economy. Earlier, William Stanley Jevons, a proponent of mathematical methods applied to the subject, advocated economics for brevity and it is available as an area of study in certain colleges and universities. Originally, political economy meant the study of the conditions under which production or consumption within limited parameters was organized in nation-states, in that way, political economy expanded the emphasis of economics, which comes from the Greek oikos and nomos. Thus, political economy was meant to express the laws of production of wealth at the state level, the phrase économie politique first appeared in France in 1615 with the well-known book by Antoine de Montchrétien, Traité de l’economie politique.
The French physiocrats, along with Adam Smith, John Stuart Mill, David Ricardo, Henry George, the worlds first professorship in political economy was established in 1754 at the University of Naples Federico II in southern Italy. The Neapolitan philosopher Antonio Genovesi was the first tenured professor, in 1763, Joseph von Sonnenfels was appointed a Political Economy chair at the University of Vienna, Austria. Thomas Malthus, in 1805, became Englands first professor of economy, at the East India Company College, Haileybury. This left the class of 1998 as the last to be graduated with a Master of Arts in Political Economy. In the United States, political economy first was taught at the College of William and Mary, an early and continuing focus of that research program is what came to be called constitutional political economy. Other traditional topics include analysis of public policy issues as economic regulation, rent-seeking, market protection, institutional corruption. From the mid-1990s, the field has expanded, in part aided by new data sets that allow tests of hypotheses on comparative economic systems.
New political economy may treat economic ideologies as the phenomenon to explain, Charles S. Maier suggests that a political economy approach interrogates economic doctrines to disclose their sociological and political premises. In sum, regards economic ideas and behavior not as frameworks for analysis and this approach informs Andrew Gambles The Free Economy and the Strong State, and Colin Hays The Political Economy of New Labour. It informs much work published in New Political Economy, a journal founded by Sheffield University scholars in 1996. International political economy is a field comprising approaches to the actions of various actors. They are associated with the journal The Review of International Political Economy, there is a more critical school of IPE, inspired by thinkers such as Antonio Gramsci and Karl Polanyi, two major figures are Matthew Watson and Robert W. Cox
Agronomics was a branch of economics that specifically dealt with land usage. It focused on maximizing the crop yield while maintaining a good soil ecosystem, throughout the 20th century the discipline expanded and the current scope of the discipline is much broader. Agricultural economics today includes a variety of applied areas, having considerable overlap with conventional economics, Agricultural economists have made substantial contributions to research in economics, development economics, and environmental economics. Agricultural economics influences food policy, agricultural policy, and environmental policy, Economics has been defined as the study of resource allocation under scarcity. Agronomics, or the application of methods to optimizing the decisions made by agricultural producers. The field of economics can be traced out to works on land economics. Henry Charles Taylor was the greatest contributor with the establishment of the Department of Agricultural Economics at Wisconsin in 1909, another contributor,1979 Nobel Economics Prize winner Theodore Schultz, was among the first to examine development economics as a problem related directly to agriculture.
The discipline was closely linked to applications of mathematical statistics and made early. The farm sector is frequently cited as a example of the perfect competition economic paradigm. In Asia, agricultural economics was offered first by the University of the Philippines Los Baños Department of Agricultural Economics in 1919, in addition to economists long-standing emphasis on the effects of prices and incomes, researchers in this field have studied how information and quality attributes influence consumer behavior. Agricultural economics research has addressed diminishing returns in agricultural production, as well as farmers costs, much research has applied economic theory to farm-level decisions. Development economics is concerned with the improvement of living conditions in low-income countries. The International Association of Agricultural Economists is a professional association. The association publishes the journal Agricultural Economics, there is a European Association of Agricultural Economists, an African Association of Agricultural Economists and an Australian Agricultural and Resource Economics Society.
Substantial work in agricultural economics internationally is conducted by the International Food Policy Research Institute, the AAEA publishes the American Journal of Agricultural Economics and Applied Economic Perspectives and Policy. Careers in agricultural economics require at least a degree. A2011 study by the Georgetown Center on Education and the Workforce rated agricultural economics tied for 8th out of 171 fields in terms of employability, Robert E. and Prabhu Pingali. Agrarian law Agrarian reform Agribusiness Agricultural value chain C. S, agency for International Development, Bureau for Economic Growth and Trade U. S
Operations research, or operational research in British usage, is a discipline that deals with the application of advanced analytical methods to help make better decisions. Further, the operational analysis is used in the British military, as an intrinsic part of capability development, management. In particular, operational analysis forms part of the Combined Operational Effectiveness and Investment Appraisals and it is often considered to be a sub-field of applied mathematics. The terms management science and decision science are used as synonyms. Operation research is concerned with determining the maximum or minimum of some real-world objective. Originating in military efforts before World War II, its techniques have grown to concern problems in a variety of industries, nearly all of these techniques involve the construction of mathematical models that attempt to describe the system. Because of the computational and statistical nature of most of these fields, OR has ties to computer science.
In the decades after the two wars, the techniques were more widely applied to problems in business, industry. Early work in research was carried out by individuals such as Charles Babbage. Percy Bridgman brought operational research to bear on problems in physics in the 1920s, modern operational research originated at the Bawdsey Research Station in the UK in 1937 and was the result of an initiative of the stations superintendent, A. P. Rowe. Rowe conceived the idea as a means to analyse and improve the working of the UKs early warning radar system, initially, he analysed the operating of the radar equipment and its communication networks, expanding to include the operating personnels behaviour. This revealed unappreciated limitations of the CH network and allowed action to be taken. Scientists in the United Kingdom including Patrick Blackett, Cecil Gordon, Solly Zuckerman, other names for it included operational analysis and quantitative management. During the Second World War close to 1,000 men and women in Britain were engaged in operational research, about 200 operational research scientists worked for the British Army.
Patrick Blackett worked for different organizations during the war. In 1941, Blackett moved from the RAE to the Navy, after first working with RAF Coastal Command, in 1941, blacketts team at Coastal Commands Operational Research Section included two future Nobel prize winners and many other people who went on to be pre-eminent in their fields. They undertook a number of analyses that aided the war effort. Convoys travel at the speed of the slowest member, so small convoys can travel faster and it was argued that small convoys would be harder for German U-boats to detect
Economic geography is the study of the location and spatial organization of economic activities across the world. It represents a traditional subfield of the discipline of geography, many economists have approached the field in ways more typical of the discipline of economics. The subject matter investigated is strongly influenced by the researchers methodological approach, neoclassical location theorists, following in the tradition of Alfred Weber, tend to focus on industrial location and use quantitative methods. Economists such as Paul Krugman and Jeffrey Sachs have analyzed many traits related to economic geography, the name geographical economics has been suggested as an alternative. Some of the first traces of the study of aspects of economic activities can be found in seven Chinese maps of the State of Qin dating to the 4th century BC. Ancient writings can be attributed to the Greek geographer Strabos Geographika compiled almost 2000 years ago, the earliest travel journals included descriptions of the native peoples, the climate, the landscape, and the productivity of various locations.
These early accounts encouraged the development of trade patterns and ushered in the era of mercantilism. World War II contributed to the popularization of geographical knowledge generally, during environmental determinisms time of popularity, Ellsworth Huntington and his theory of climatic determinism, while greatly criticized, notably influenced the field. Valuable contributions came from location theorists such as Johann Heinrich von Thünen or Alfred Weber, other influential theories include Walter Christallers Central place theory, the theory of core and periphery. Fred K. Well-known economic geographers of this period include William Garrison, Brian Berry, Waldo Tobler, Peter Haggett, regional economic geography examines the economic conditions of particular regions or countries of the world. It deals with economic regionalization as well as economic development. Historical economic geography examines the history and development of economic structure. Critical economic geography is a taken from the point of view of contemporary critical geography.
Behavioral economic geography examines the processes underlying spatial reasoning, locational decision making. Economic geography is sometimes approached as a branch of anthropogeography that focuses on systems of human economic activity. Spatiotemporal systems of analysis include economic activities of region, mixed social spaces, analysis may focus on production, exchange and consumption of items of economic activity. It thus focuses on structures of agricultural landscapes and asks for the processes that lead to spatial patterns. While most research in this area concentrates rather on production than on consumption, the latter approach of agricultural geography is often applied within regional geography
Risk tolerance is a crucial factor in personal financial decision making. Risk tolerance is defined as individuals willingness to engage in a financial activity whose outcome is uncertain, Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology and microeconomic theory, in so doing, these behavioral models cover a range of concepts, the study of behavioral economics includes how market decisions are made and the mechanisms that drive public choice. The use of the term behavioral economics in U. S. scholarly papers has increased in the past few years, there are three prevalent themes in behavioral finances, People often make decisions based on approximate rules of thumb and not strict logic. Framing, The collection of anecdotes and stereotypes that make up the mental emotional filters individuals rely on to understand and respond to events, Market inefficiencies, These include mis-pricings and non-rational decision making.
During the classical period of economics, microeconomics was closely linked to psychology and they developed the concept of homo economicus, whose psychology was fundamentally rational. However, many important neo-classical economists employed more sophisticated psychological explanations, including Francis Edgeworth, Vilfredo Pareto, Economic psychology emerged in the 20th century in the works of Gabriel Tarde, George Katona, and Laszlo Garai. Expected utility and discounted utility models began to gain acceptance, generating testable hypotheses about decision-making given uncertainty and intertemporal consumption, in the 1960s cognitive psychology began to shed more light on the brain as an information processing device. In mathematical psychology, there is a longstanding interest in the transitivity of preference, prospect theory has two stages, an editing stage and an evaluation stage. In the editing stage, risky situations are simplified using various heuristics of choice, outcomes are compared to the reference point and classified as gains if greater than the reference point and losses if less than the reference point.
Loss aversion, Losses bite more than equivalent gains, in their 1979 paper published in Econometrica and Tversky found the median coefficient of loss aversion to be about 2.25, i. e. losses bite about 2.25 times more than equivalent gains. Prospect theory is able to explain everything that the two main existing decision theories—expected utility theory and rank dependent utility theory—can explain, prospect theory has been used to explain a range of phenomena that existing decision theories have great difficulty in explaining. These include backward bending labor supply curves, asymmetric price elasticities, tax evasion, co-movement of stock prices and consumption, in 1992, in the Journal of Risk and Uncertainty and Tversky gave their revised account of prospect theory that they called cumulative prospect theory. The new theory eliminated the editing phase in prospect theory and focused just on the evaluation phase and its main feature was that it allowed for non-linear probability weighting in a cumulative manner, which was originally suggested in John Quiggins rank dependent utility theory.
Psychological traits such as overconfidence, projection bias, and the effects of limited attention are now part of the theory, Behavioral economics has been applied to intertemporal choice. Intertemporal choice is defined as making a decision and having the effects of such decision happening in a different time, hyperbolic discounting describes the tendency to discount outcomes in the near future more than for outcomes in the far future. Other branches of behavioral economics enrich the model of the utility function without implying inconsistency in preferences, ernst Fehr, Armin Falk, and Matthew Rabin studied fairness, inequity aversion, and reciprocal altruism, weakening the neoclassical assumption of perfect selfishness. This work is particularly applicable to wage setting, Behavioral economics caught on among the general public with the success of books such as Dan Arielys Predictably Irrational
History of economic thought
The history of economic thought deals with different thinkers and theories in the subject that became political economy and economics, from the ancient world to the present day. It encompasses many disparate schools of economic thought, ancient Greek writers such as the philosopher Aristotle examined ideas about the art of wealth acquisition, and questioned whether property is best left in private or public hands. In the Middle Ages, scholasticists such as Thomas Aquinas argued that it was an obligation of businesses to sell goods at a just price. Fan Li, an adviser to King Goujian of Yue, wrote on economic issues, chanakya wrote the Arthashastra, a treatise on statecraft, economic policy and military strategy. Ancient Athens, a society, developed an embryonic model of democracy. Xenophons Oeconomicus is a dialogue principally about household management and agriculture, Platos dialogue The Republic describing an ideal city-state run by philosopher-kings contained references to specialization of labor and to production.
Plato was the first to advocate the theory of money. Aristotles Politics analyzed different forms of the state as a critique of Platos model of a philosopher-kings, of particular interest for economists, Plato provided a blueprint of a society based on common ownership of resources. Aristotle viewed this model as an oligarchical anathema, though Aristotle did certainly advocate holding many things in common, he argued that not everything could be, simply because of the wickedness of human nature. It is clearly better that property should be private, wrote Aristotle, but the use of it common, in Politics Book I, Aristotle discusses the general nature of households and market exchanges. Aristotle himself highly disapproved of usury and cast scorn on making money through a monopoly, not useful as a means to any of the necessities of life. Thomas Aquinas was an Italian theologian and economic writer and he taught in both Cologne and Paris, and was part of a group of Catholic scholars known as the Schoolmen, who moved their enquiries beyond theology to philosophical and scientific debates.
In the treatise Summa Theologica Aquinas dealt with the concept of a just price, similar in many ways to the modern concept of long run equilibrium, a just price was just sufficient to cover the costs of production, including the maintenance of a worker and his family. Aquinas argued it was immoral for sellers to raise their prices simply because buyers had a pressing need for a product, Aquinas discusses a number of topics in the format of questions and replies, substantial tracts dealing with Aristotles theory. Questions 77 and 78 concern economic issues, primarily what a just price might be, Aquinas argued against any form of cheating and recommended always paying compensation in lieu of good service. Whilst human laws might not impose sanctions for unfair dealing, divine law did, one of Aquinas main critics was Duns Scotus, originally from Duns Scotland, who taught in Oxford and Paris. If people did not benefit from a transaction, in Scotus view, Scotus said merchants perform a necessary and useful social role by transporting goods and making them available to the public.
Jean Buridan was a French priest, buridanus looked at money from two angles, its metal value and its purchasing power, which he acknowledged can vary
Cultural economics is the branch of economics that studies the relation of culture to economic outcomes. Here, culture is defined by shared beliefs and preferences of respective groups, programmatic issues include whether and how much culture matters as to economic outcomes and what its relation is to institutions. Applications include the study of religion, social norms, social identity, beliefs in redistributive justice, hatred, terrorism and the culture of economics. Methods include case studies and theoretical and empirical modeling of cultural transmission within, in 2013 Said E. Dawlabani added the value systems approach to the cultural emergence aspect of macroeconomics. Cultural economics develops from how wants and tastes are formed in society and this is partly due to nurture aspects, or what type of environment one is raised in, as it is the internalization of one’s upbringing that shapes their future wants and tastes. Acquired tastes can be thought of as an example of this, a key thought area that separates the development of cultural economics from traditional economics is a difference in how individuals arrive at their decisions.
These trajectories consist of regularities, which have built up throughout the years. Economists have started to look at cultural economics with a thinking approach. In this approach, the economy and culture are each viewed as a system where “interaction and feedback effects were acknowledged, and where in particular the dynamic were made explicit. ”In this sense, the interdependencies of culture. The book explores the intersections of multiple disciplines such as development, organizational behavior. The advancing pace of new technology is transforming how the public consumes and shares culture, the cultural economic field has seen great growth with the advent of online social networking which has created productivity improvements in how culture is consumed. New technologies have lead to cultural convergence where all kinds of culture can be accessed on a single device, throughout their upbringing, younger persons of the current generation are consuming culture faster than their parents ever did, and through new mediums.
The smartphone is an example of this where books, talk, artwork. This field has seen growth through the advent of new economic studies that have put on a cultural lens. For example, a recent study on Europeans living with their families into adulthood was conducted by Paola Sapienza, the study found that those of Southern European descent tend to live at home with their families longer than those of Northern European descent. Sapienzas work is an example of how the growth of economics is beginning to spread across the field. An area that cultural economics has a presence in is sustainable development. Sustainable development has been defined as “…development that meets the needs of the present without compromising the ability of future generations to meet their own needs…”, culture plays an important role in this as it can determine how people view preparing for these future generations
A market is one of the many varieties of systems, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers and it can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society, Markets allow any trade-able item to be evaluated and priced. A market emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights of services, Markets can be worldwide, for example the global diamond trade. National economies can be classified, for example as developed markets or developing markets, in mainstream economics, the concept of a market is any structure that allows buyers and sellers to exchange any type of goods and information.
The exchange of goods or services, with or without money, is a transaction, a major topic of debate is how much a given market can be considered to be a free market, that is free from government intervention. However it is not always clear how the allocation of resources can be improved since there is always the possibility of government failure, a market is one of the many varieties of systems, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers and it can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enables the distribution and allocation of resources in a society, Markets allow any trade-able item to be evaluated and priced. A market sometimes emerges more or less spontaneously but is often constructed deliberately by human interaction in order to enable the exchange of rights of services.
Markets of varying types can spontaneously arise whenever a party has interest in a good or service that other party can provide. Hence there can be a market for cigarettes in correctional facilities, another for chewing gum in a playground, and yet another for contracts for the future delivery of a commodity. Markets vary in form, scale and types of participants, as well as the types of goods and services traded, nevertheless and they apply the market dynamics to facilitate information aggregation. However, market prices may be distorted by a seller or sellers with monopoly power, such price distortions can have an adverse effect on market participants welfare and reduce the efficiency of market outcomes. Also, the level of organization and negotiating power of buyers and sellers markedly affects the functioning of the market. Markets are a system, and systems have structure, the structure of a well-functioning market is defined by the theory of perfect competition. Market failures are often associated with time-inconsistent preferences, information asymmetries, non-perfectly competitive markets, principal–agent problems, among the major negative externalities which can occur as a side effect of production and market exchange, are air pollution and environmental degradation.
There exists a popular thought, especially among economists, that markets would have a structure of a perfect competition
Heterodox economics is an umbrella term used to cover various approaches, schools, or traditions. These include anarchist, Marxian, evolutionary, Austrian, social, post-Keynesian, Mainstream economics may be called orthodox or conventional economics by its critics. Alternatively, mainstream economics deals with the rationality–individualism–equilibrium nexus and heterodox economics is more radical in dealing with the institutions–history–social structure nexus, many mainstream economists dismiss heterodox economics as fringe and irrelevant, with little or no influence on the vast majority of academic economists in the English-speaking world. A recent review documents several prominent groups of heterodox economists since at least the 1990s as working together with an increase in coherence across different constituents. Along these lines, the International Confederation of Associations for Pluralism in Economics does not define heterodox economics and has avoided defining its scope, ICAPE defines its mission as promoting pluralism in economics.
One study suggests four key factors as important to the study of economics by self-identified heterodox economists, natural systems, uncertainty, a number of heterodox schools of economic thought challenged the dominance of neoclassical economics after the neoclassical revolution of the 1870s. Other heterodox schools active before and during the Great Depression included Technocracy, physical scientists and biologists were the first individuals to use energy flows to explain social and economic development. by expending what is called power or energy. Austrians and post-Keynesians who dissented from this emerged as clearly defined heterodox schools. In addition, the Marxist and institutionalist schools remained active, as a consequence, some heterodox economists, such as John B. Davis, proposed that the definition of economics has to be adapted to this new. There is no single heterodox economic theory, there are many different heterodox theories in existence, what they all share, however, is a rejection of the neoclassical orthodoxy as representing the appropriate tool for understanding the workings of economic and social life.
The reasons for this rejection may vary, some of the elements commonly found in heterodox critiques are listed below. One of the most broadly accepted principles of economics is the assumption of the rationality of economic agents. Indeed, for a number of economists, the notion of rational maximizing behavior is taken to be synonymous with economic behavior, when some economists studies do not embrace the rationality assumption, they are seen as placing the analyses outside the boundaries of the Neoclassical economics discipline. Neoclassical economics begins with the a priori assumptions that agents are rational and these assumptions provide the backbone for rational choice theory. Many heterodox schools are critical of the homo economicus model of behavior used in standard neoclassical model. A typical version of the critique is that of Satya Gabriel, Neoclassical economic theory is grounded in a conception of human psychology. It is assumed that all beings make economic decisions so as to maximize pleasure or utility
Labour economics seeks to understand the functioning and dynamics of the markets for wage labour. Labour markets or job markets function through the interaction of workers and employers, Labour economics looks at the suppliers of labour services and the demanders of labour services, and attempts to understand the resulting pattern of wages and income. In economics, labour is a measure of the work done by human beings and it is conventionally contrasted with such other factors of production as land and capital. There are theories which have developed a concept called human capital, there are two sides to labour economics. Labour economics can generally be seen as the application of microeconomic or macroeconomic techniques to the labour market, microeconomic techniques study the role of individuals and individual firms in the labour market. Macroeconomic techniques look at the interrelations between the market, the goods market, the money market, and the foreign trade market. It looks at how these interactions influence macro variables such as employment levels, participation rates, aggregate income, the labour force is defined as the number of people of working age, who are either employed or actively looking for work.
The participation rate is the number of people in the force divided by the size of the adult civilian noninstitutional population. The unemployment level is defined as the labour force minus the number of people currently employed, the unemployment rate is defined as the level of unemployment divided by the labour force. The employment rate is defined as the number of people currently employed divided by the adult population, in these statistics, self-employed people are counted as employed. Variables like employment level, unemployment level, labour force, and they can be contrasted with flow variables which measure a quantity over a duration of time. Changes in the force are due to flow variables such as natural population growth, net immigration, new entrants. Technological advancement often reduces frictional unemployment, for example, internet search engines have reduced the cost, structural unemployment – This reflects a mismatch between the skills and other attributes of the labour force and those demanded by employers.
The process of globalization has contributed to changes in labour markets. Natural rate of unemployment – This is the summation of frictional and structural unemployment and it is the lowest rate of unemployment that a stable economy can expect to achieve, given that some frictional and structural unemployment is inevitable. Economists do not agree on the level of the rate, with estimates ranging from 1% to 5%. The estimated rate varies from country to country and from time to time, demand deficient unemployment – In Keynesian economics, any level of unemployment beyond the natural rate is probably due to insufficient goods demand in the overall economy. During a recession, aggregate expenditure is deficient causing the underutilisation of inputs, neoclassical economists view the labour market as similar to other markets in that the forces of supply and demand jointly determine price and quantity
Development economics is a branch of economics which deals with economic aspects of the development process in low-income countries. Development economics involves the creation of theories and methods that aid in the determination of policies and practices, unlike in many other fields of economics, approaches in development economics may incorporate social and political factors to devise particular plans. Also unlike many other fields of economics, there is no consensus on what students should know, different approaches may consider the factors that contribute to economic convergence or non-convergence across households and countries. The earliest Western theory of development economics was mercantilism, which developed in the 17th century, earlier theories had given little attention to development. For example, Scholasticism the dominant school of thought during medieval feudalism, emphasized reconciliation with Christian theology and ethics, the 16th- and 17th-century School of Salamanca, credited as the earliest modern school of economics, likewise did not address development specifically.
Mercantilism held that a nations prosperity depended on its supply of capital and it emphasised the maintenance of a high positive trade balance as a means of accumulating this bullion. To achieve a trade balance, protectionist measures such as tariffs. Mercantilist development theory advocated colonialism, in France, mercantilist policy is most associated with 17th-century finance minister Jean-Baptiste Colbert, whose policies proved influential in American development. Mercantilist ideas continue in the theories of nationalism and neomercantilism. A significant difference from mercantilism was the de-emphasis on colonies, in favor of a focus on domestic production, the names most associated with 19th-century economic nationalism are the American Alexander Hamilton, the German-American Friedrich List, and the American Henry Clay. Hamiltons 1791 Report on Manufactures, his opus, is the founding text of the American System. The key authors are Paul Rosenstein-Rodan, Kurt Mandelbaum, Ragnar Nurkse, only after the war did economists turn their concerns towards Asia and Latin America.
At the heart of these studies, by such as Simon Kuznets and W. Arthur Lewis was an analysis of not only economic growth. The linear-stages-of-growth model posits that there are a series of five stages of development which all countries must go through during the process of development. Such theories have been criticized for not recognizing that, while necessary and that is to say that this early and simplistic theory failed to account for political and institutional obstacles to development. Furthermore, this theory was developed in the years of the Cold War and was largely derived from the successes of the Marshall Plan. This has led to the criticism that the theory assumes that the conditions found in developing countries are the same as those found in post-WWII Europe. There are two forms of structural-change theory, W