K REMER ' S O-R ING T HEORY OF E CONOMIC D EVELOPMENT Provides insights into low-level equilibrium traps and explains the reasons for the existence of poverty traps and why countries with low- income are caught in these traps The theory models production with strong complementarities among inputs The production function assumes that output is derived by multiplying level of skill required for completing a task by the total number of tasks 27
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