Flawed assumptions in development economics challenge societal progress and policy decisions.
Development economics focuses on how resources are allocated in poor societies over time, with an emphasis on the role of the public sector. The core assumptions in development economics, such as the belief that inefficiency implies irrationality and that social welfare can guide public policy, are flawed. However, the idea that rational people make choices leading to efficient outcomes and the use of equilibrium analysis are valuable for research in anthropology.