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DE_sylabus_IES_2024.pdf | DevEcon sylabus 2024 | prof. PhDr. Michal Bauer, Ph.D. |
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The course will cover major current issues and approaches in development economics with particular focus on the Least Developed Countries. It will use advances in economic growth models and empirical literature to provide a basic understanding of individual issues that may contribute to the economic laggardness of these countries and cause developmental traps. The course will be divided into three main parts. The first part will serve as an introduction into the theoretical models that illustrate the substance of economic underdevelopment. A particular attention will be devoted to the role of fertility, health, nutrition human capital and education. The second part extends the analysis to include the specifics of environment, society and political dynamics in Least Developed Countries. In addition to this theoretical grounding, the course will seek to address in its third part the question on whether and how developed countries can contribute to the solution of Least Developed Countries.
Last update: Bauer Michal, prof. PhDr., Ph.D. (21.09.2012)
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Structure and Readings:
Part I: Economic models of growth in development economics Week 1: Introduction Barro, Robert and Xavier Sala-i-Martin Economic Growth, second edition, MIT Press: Cambridge MA 2003
Aghion, P. and S. Durlauf, editors, Handbook of Economic Growth, North-Holland: Amsterdam, 2005
Ray, Debraj. Development Economics. Princeton University Press, 1998.
Todaro, Michael, Economic Development , Addison-Wesley Publishers, 1997. (UPDATE) Week 2: The neoclassical growth model Chapters 1-2 of Barro and Sala-i-Martin
Francesco Caselli "The Missing Input: Accounting for Cross-Country Income Differences", in the Handbook of Economic Growth, 2005, http://post.economics.harvard.edu/faculty/caselli/papers/handbook.pdf
Chang Tai Hsieh, What Explains the Industrial Revolution in East Asia? Evidence from the Factor Markets. (American Economic Review, June 2002). http://www.wws.princeton.edu/~chsieh/aea3.pdf
Chang Tai Hsieh and Peter Klenow, Relative Prices and Relative Prosperity , mimeo Stanford and Berkeley, September 2005, http://www.klenow.com/RPandRP.pdf Week 3: Growth models and fertility Malthus, T.R., Chapters 1 & 2, "Essay on the Principle of Population 1798," The Works of Thomas Robert Malthus, Pickering & Chatto Publishers Limited, London, 1986.
Kremer, M., "Population Growth and Technological Change: 1,000,000 B.C. to 1990," Quarterly Journal of Economics
Galor, O., and David N. Weil, "The Gender Gap, Fertility, and Growth," American Economic Review
Becker, Murphy & Tamura Week 4: Health and nutrition Miguel, Edward, and Michael Kremer (2004). "Worms: Identifying Impacts on Education and Health the Presence of Treatment Externalities", Econometrica, 72(1), 159-217.
Thomas, Duncan, et al. (2003). "Iron Deficiency and the Well-Being of Older Adults: Early Results from a Randomized Nutrition Intervention", unpublished manuscript, UCLA.
Banerjee, Abhijit, Angus Deaton, and Esther Duflo. (2004). "Health Care Delivery in Rural Rajasthan", Economic and Political Weekly, 39(9), 944-949.
Subramanian, Shankar, and Angus Deaton. (1996). "The Demand for Food and Calories," Journal of Political Economy, 104(1), 133-162.
Young, Alwyn. (2005). "The Gift of Dying: The Tragedy of AIDS and the Welfare of Future African Generations", forthcoming Quarterly Journal of Economics.
Evans, David K., and Edward Miguel. (2004). "Orphans and Schooling in Africa: A Longitudinal Analysis", unpublished working paper.
Fox, Matthew, et al. (2004). "The Impact of HIV/AIDS on Labour Productivity in Kenya", Tropical Medicine and International Health, 9(3), 318-324. Week 5: Education Bils, Mark and P. Klenow "Does Schooling Cause Growth?," American Economic Review, December 2000, 90(5), pp. 1160-1183.
Pritchett, Lant. "Does learning to add up add up? The returns to schooling in aggregate data," draft for Handbook of Education Economics, BREAD Working Paper 53, 2004, http://www.cid.harvard.edu/bread/papers/working/053.pdf
Krueger, Alan B. and Mikael Lindahl "Education for growth" Journal of Economic Literature, 2001
Jess Benhabib and Mark M. Spiegel, Human Capital and Technology Diffusion, in Aghion and Durlauf, Handbook of Economic Growth, 2005, http://www.econ.nyu.edu/user/benhabib/growthhandbook10.pdf
David N. Weil, Accounting for the Effect of Health on Economic Growth, NBER Banerjee, Abhijit, Shawn Cole Esther Duflo and Leigh Linden (2003) "Remedying Education: Evidence from Two Randomized Experiments in India Duflo, Esther (2001), "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment" American Economic Review Angrist, Joshua and Victor Lavy (1999), "Using Maimonides' Rule to Estimate the Effect of Class Size on Scholastic Achievement," Quarterly Journal of Economics Week 6: Geography and development Binswanger HP and Deininger K, Explaining agricultural and agrarian policies in developing countries, JEL, 35, 4, December 1997
Borlaug, Norman E. and Christopher R. Dowswell. 1995. Mobilising Science and Technology to Get Agriculture Moving in Africa. Development Policy Review, Vol. 13, pp. 115-29.
Delgado, Christopher L. 1995. Africa's Changing Agricultural Development Strategies: Past and Present Paradigms as a Guide to the Future. IFPRI Food, Agricultural and the Environment Discussion Paper 3, Washington DC: International Food Policy Research Institute, April.
Gollin, D., S. Parente and R. Rogerson, "The Role of Agriculture in Development." American Economic Review Papers and Proceedings, vol. 92, no. 2, May 2002, pp. 160-64
Ravallion, Martin; Datt, Gaurav, Why Has Economic Growth Been More Pro-poor in Some States of India Than Others?
Datt, Gaurav and Martin Ravallion. Farm Productivity and Rural Poverty in India
Matsuyama, Kiminori, 1992. Agricultural Productivity, Comparative Advantage, and Economic Growth. Journal of Economic Theory, vol. 58, no. 2, December 1992, pp. 317-34
Mellor, John W. (2000), "Faster More Equitable Growth: The Relation Between Growth in Agriculture and Poverty Reduction Week 7: Institutions and development Daron Acemoglu, Simon Johnson, James Robinson, Institutions as the Fundamental Cause of Long-Run Growth, in Aghion and Durlauf, Handbook of Economic Growth, http://elsa.berkeley.edu/~chad/handbook9sj.pdf
David Albouy,The Colonial Origins of Comparative Development: A Reinvestigation of the Data, Department of Economics, University of California - Berkeley, July 2004, http://socrates.berkeley.edu/~albouy/AJRreinvestigation/AJRreinvestigation.pdf
Abhijit Banerjee and Lakshmi Iyer, 2005, "History Institutions and Economic Performance: The Legacy of Colonial Land Tenure Systems in India", American Economic Review, Vol. 95(4), pp. 1190-1213.
Edward L. Glaeser, Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer, Do institutions cause growth? Journal of Economic Growth, September, 2004, http://papers.nber.org/papers/w10568.pdf
S. Djankov, E. Glaeser, A. Shleifer, R. LaPorta, and F. Lopez-de-Silanes "The New Comparative Economics," Journal of Comparative Economics 31(4) (2003): 595-619.
Ross Levine, "Law, Endowments, and Property Rights." Journal of Economic Perspectives, 19(3), Summer, 2005, 61-88.
Rohini Pande and Christopher Udry, Institutions and Development: A View from Below, Yale University Working Paper, 2005, http://www.econ.yale.edu/~cru2/pdf/institutions_draft.pdf
Valerie Bockstette, Areendam Chanda, and Louis Putterman, 2002, States and Markets: the Advantage of an Early Start, Journal of Economic Growth, 7, 347-369
D. Rodrik, A. Subramanian, and F. Trebbi, "Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development", Journal of Economic Growth, vol. 9, no.2, June 2004
W. Easterly and R. Levine, "Tropics, germs, and crops: the role of endowments in economic development" Journal of Monetary Economics, 50:1, January 2003. Week 8: Political stability, networks and social capital Marcel Fafchamps, Market Institutions in Sub-Saharan Africa, MIT Press, 2004 (Chapters 1, 2, 22)
Marcel Fafchamps, Networks, Communities, and Markets in Sub-Saharan Africa: Implications for Firm Growth and Investment, Journal of African Economies, Volume 10, supplement 2: September 2001, pp. 109-142.
James Rauch, "Business and Social Networks in International Trade," Journal of Economic Literature 39 (December 2001): 1177-1203.
Greif, Avner (1993) "Contract Enforceability and Economic Institutions in Early Trade: The Maghribi Traders' Coalition,", American Economic Review, 83(3), pp.525-548.
Conley, Timothy and Chris Udry. July 2005. .Learning About a New Technology: Pineapple in Ghana.. Manuscript: Yale.
Deepa Narayan, and Lant Pritchett, Cents and Sociability: Household Income and Social Capital in Rural Tanzania , Economic Development and Cultural Change, 1999, vol. 47
Edward L. Glaeser, David Laibson, and Bruce Sacerdote The Economic Approach to Social Capital , Economic Journal 112 (2002): 437-458.
Edward L. Glaeser, Bruce I. Sacerdote and Jose A. Scheinkman The Social Multiplier, Journal of the European Economic Association 1(2) (2003): 345-353.
Steven Durlauf and Marcel Fafchamps, Social Capital, in Aghion and Durlauf, editors, Handbook of Economic Growth, 2005.
Daron Acemoglu, 2005, The Form of Property Rights: Oligarchic vs. Democratic Societies, MIT mimeo, http://econwww. mit.edu/faculty/download_pdf.php?id=832
Daron Acemoglu and James A. Robinson, Economic Origins of Dictatorship and Democracy. Book manuscript, MIT, December 2005
Dani Rodrik, "Democracies Pay Higher Wages," Quarterly Journal of Economics, August 1999.
Dani Rodrik, Institutions for High-Quality Growth: What They Are and How to Acquire Them, Studies in Comparative International Development, Fall 2000. Week 9: Conflicts, ethnic and social divisions Easterly, William, and Ross Levine. (1997). "Africa's growth tragedy: policies and ethnic divisions", Quarterly Journal of Economics, 112 (4), 1203-1250.
Pande, Rohini. (2003). "Can Mandated Political Representation Increase Policy Influence for Disadvantaged Minorities? Theory and Evidence from India," American Economic Review, 93(4), 1132-1151.
Miguel, Edward. (2004). "Tribe or Nation? Nation-building and Public Goods in Kenya versus Tanzania", World Politics, 56, 327-362.
Grossman, Herschell I. (1991). "A General Equilibrium Model of Insurrections", American Economic Review, 81(4), 912-921.
Miguel, Edward, Shanker Satyanath, and Ernest Sergenti. (2004). "Economic Shocks and Civil Conflict: An Instrumental Variables Approach", Journal of Political Economy, 112(4), 725-753.
Davis, Donald R., and David Weinstein. (2002). "Bones, Bombs, and Breakpoints: The Geography of Economic Activity", American Economic Review, 92(5). Part II: Foreign aid - its benefits and pitfalls Week 10: Foreign aid Raghuram G. Rajan and Arvind Subramanian, Aid and Growth: What Does the Cross-Country Evidence Really Show? IMF Working Paper, June 2005
Burnside, Craig and David Dollar, "Aid, Policies, and Growth," American Economic Review 90(4) (September 2000): pp. 847-68.
William Easterly, Ross Levine, and David Roodman) "New Data, New Doubts: A Comment on Burnside and Dollar's "Aid, Policies, and Growth" American Economic Review, June 2004
Peter Boone. "Politics and the Effectiveness of Foreign Aid." European Economic Review, 1996, 40(2), pp. 289-329.
Alberto Alesina and Beatrice Weder, Do Corrupt Governments Receive Less Foreign Aid? American Economic Review, September 2002, 92: 1126-37 http://post.economics.harvard.edu/faculty/alesina/pdf-papers/aidjune10.pdf
Jakob Svensson, "Foreign Aid and Rent-Seeking", Journal of International Economics, 2000, Vol. 51 (2): 437-461.
Jakob Svensson, Why Conditional Aid Doesn't Work and What Can Be Done About It?", Journal of Development Economics, 2003, vol. 70 (2): 381-402.
William Easterly, What did structural adjustment adjust? The association of policies and growth with repeated IMF and World Bank adjustment loans, Journal of Development Economics Vol 76, February 2005
Esther Duflo and Michael Kremer, Use of Randomization in the Evaluation of Development Effectiveness, MIT and Harvard Working Paper, 2003.
Jeffrey Sachs, The End of Poverty: Economic Possibilities for Our Time, Penguin Press, 2005 Chapter 12: On the Ground Solutions for Ending Poverty; Chapter 13: Making the Investments Needed to End Poverty.
William Easterly, "The Big Push Déj? vu: A Review of Jeffrey Sachs's The End of Poverty: Economic Possibilities for Our Time," Journal of Economic Literature, Vol. XLIV (March 2006), pp. 118-127.
William Easterly, The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good, Penguin Press, 2006 Chapter 5: The Rich have Markets, the Poor have Bureaucrats Week 11: Foreign aid and the obstacles to its efficient distribution (Guest lecturer: Pánek - People in Need) Week 12: On the search for an efficient foreign aid framework (Guest lecturer: Jelinek - Czech Development Centre, Institute of International Relations) Last update: Bauer Michal, prof. PhDr., Ph.D. (21.09.2012)
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