30145 - DEVELOPMENT ECONOMICS
Course taught in English
Synchronous Blended: Lezioni erogate in modalità sincrona in aula (max 1 ora per credito online sincrona)
Students are expected to be comfortable with econometrics and microeconomics to feel at ease with this course.
This course provides an introduction to the study of development economics. The central aim of the course is to present key theoretical models and related empirical evidence that shape our thinking of economic interactions and policy-making in developing countries. The course begins by giving an overview of growth theory in order to identify potential drivers of economic growth and to provide a benchmark for analysing the role of market imperfections. The course then analyzes markets and institutions in developing countries, with a focus on how they have developed to make up for market imperfections in developing countries. In particular, the structure of labor and credit markets in developing countries is introduced with a view towards understanding how imperfections in these markets affect the lives of the poor and the economy at large, and shape economic policy-making. The course will also explore issues related to education and gender in development, with a particular focus on the methodology of field experiments to provide insights into these topics. The course has a strong applied focus. For each topic, simple theoretical models are introduced to derive testable predictions, followed by a review of the empirical results and their implications for policy.
Introduction: Facts about Development and Growth
Growth via Factor Accumulation
Inequality and Growth
Foreign Aid, Development and Corruption
Gender and Ethnicity
Financial Markets and Microcredit
Private Sector Development and Entrepreneurship
- Become familiar with some of the key issues related to economic development in low-income countries and poverty alleviation.
- Have learned about how human capital and the quality of institutions may affect economic development.
- Understand how imperfections in labor or credit markets may hinder economic development and what kinds of policies may be effective in improving the functioning of these markets in developing countries.
- Discuss some of the key challenges related to economic development in low-income countries.
- Interpret and think critically about evidence on the effectiveness of various development policies implemented in low-income settings.
- Face-to-face lectures
The learning experience of this course is based on face-to-face lectures (online if needed), with a strong emphasis on in-class discussions. During every lecture, students are strongly encouraged to raise questions and make comments on the theoretical and empirical material presented. The course also has a strong policy focus. Class discussions include the implications of academic studies in terms of policy-making within low-income countries.
With the purpose of measuring the acquisition of the above-mentioned learning outcomes, the students’ assessment is based on a written examination (100% of the final grade). The written exam consists of exercises and open questions, aimed at assessing students’ ability to apply the economic models presented during the course and to interpret and critically discuss the evidence on the effectiveness of various development policies implemented in low-income settings. Students have to take a general written exam covering the entire course material (no partial exams).
Teaching in the course is done mainly from journal articles. The reading list and lecture notes are posted on the Agenda you@B. The following textbooks are used throughout the course:
- D. RAY, Development Economics, Princeton Univ. Press, 1998.
- A.V. BANERJEE, E. DUFLO, Poor Economics, Public Affairs, 2011.