6. Consider the relationship between aspirations and movement out of poverty.

a) Why do you think it may be important for interventions to not only relieve external constraints (like for credit, schooling, or transportation infrastructure), but also internal constraints like aspirations, self-efficacy, or hope?

b) Consider a single interventionperhaps a cash transfer, an educational intervention, or the construction of a new road to a marketin practice how could such an intervention be undertaken so that it relieves the external constraint as well as internal constraints like hope and aspirations?

c) Why is it important that the "aspirations gap" be neither too big or too small? Explain the intuition behind this with your own unique example.

7.What are the conditions in George Akerlof and Rachel Kranton's model of identity that could have the most powerful effect on behavioral choices that are related to economic development? Can you provide one illustration each, outside of the reading, how the importance of identity has both fostered prosperity and perpetuated poverty?