5183 - THE ECONOMICS OF DEVELOPMENT AND TRANSITION

The first part of the course examines the functioning of markets and institutions in developing countries. The methodological approach focuses on the role of information, incentives, and limits to contracting, and examines how developing countries cope with these types of market imperfections. The organization of the informal sector in emerging economies is studied in depth, covering such topics as: intra-household allocation of resources; contractual forms in agriculture, microfinance and group lending; risk sharing and informal insurance; firms in developing countries (with particular emphasis on ethnic and informal networks).
The second part of the course deals with the lessons learnt from the transition into a market economy of the formerly planned economies of Central and Eastern Europe. A priori expectations as to the scope and the timing of transition is compared with a posteriori evidence. Particular emphasis is devoted to characterising the speed of structural change and the role played by social security systems. The final section deals with institutional changes keeping an eye on pressures arising in the context of the EU Enlargement.

• Introduction: Institutions and markets in developing countries 
• Economics of the family
• Land markets         
• Credit markets
• Risk sharing and insurance      
• Social capital
• Firms and networks 
• Understanding Transition
• The Optimal Speed of Transition 
• Transition, Institutional Transformation and Governance
• Eastern enlargement and migration

Written exam.
Students have two options. They may take the exam in two written parts: a 1st partial exam and a 2nd partial exam. Alternatively they may take a general exam covering the entire course material.

• D. RAY, Development Economics, Princeton Univ. Press, 1998
• G. ROLAND, Transition and Economics, MIT Press, 2000
• T. BOERI, Structural Change, Welfare Systems and Labour Reallocation, Oxford Univ. Press, 2000

Additional readings and material on several topics will be available at the beginning  of the course.

For further and continuously updated information consult the IEP web site or contact SID - Servizio Informazione Didattica - Institute of Economics - via Gobbi, 5 - Room 313.