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DEVELOPMENT ECONOMICS

Program

Updated A.Y. 2019-2020

• MODULE Convenor   Prof. Alessandra Pelloni  alessandrapelloni@hotmail.com  Office hours: to be agreed by email.   Alessandra Pelloni is Professor of Economics at the University of Rome ‘Tor Vergata’ and   Senior Research Fellow  at the Rimini Center for Economic Analysis.  She studied in Modena, LSE, EUI,  and worked in Warwick and Manchester Universities for six years  Her main research interests are in the economics of growth and development and in optimal taxation. Her main publications and further details are available on www.alessandrapelloni.it

Program
• Focus Why are some countries poor while others are rich? What explains the success stories of economic development, and how can we learn from the failures? How do we make sense of the enormous inequalities that we see, both within and across countries ? What is the difference between development and growth? These, among others, are the “big questions” of economic development.

• Objectives . By the end of the course, students will have acquired an understanding of the main issues  in development economics. Subjects as theories of economic growth, economic inequality and poverty, population growth and demographic issues, human capital accumulation, trade policy, the role of finance and international aid will be treated. Students will be exercised through intensive discussion of  topics and the critical appraisal of current research.

• For the course we will  make use of the following textbooks:   G. Roland Development Economics Routledge 2016 and A.Thirwall and P. Pacheco-Lopez  Economics of Development , MacMillan 2017. . Othe useful textbooks are  J. A Ocampo, C. Rada and L. Taylor Growth and Policy in Developing Countries: a Structuralist Approach,  2009, New York: Columbia University Press. and M.Todaro and S. Smith, Economic Development.  Pearson, 2015 These texts offer complementary approaches to development issues.  An extensive set lecture notes and of readings  will be made available  during the course.

Syllabus:

First Part:

1 Introducing Economic Development: A Global Perspective

• The Meaning and Measurement of Economic Development.
• Standard and Alternative Approaches to Development.

•  Poverty and Inequality: Measurement Issues
• Randomized Trials in the Fight against Poverty
• What’s Wrong  about Inequality?
• Kuznets’s Hypothesis
• Growth, Poverty  and Inequality

2  Economic Growth: Theory and Empirics
•  Development as Growth:
• Neoclassical Growth Theory
• Endogenous Growth Theory
• Rostow’s Stages of Growth
• The Harrod-Domar Growth Model
• The Lewis Model

3 The Perpetuation of underdevelopment

•  Coordination Failures and  Multiple Equilibria
•  The Big Push Model
• Dualism

•Centre-Periphery Models

4  Population and Economic Development

• World Population Growth throughout History
• The Demographic Transition
•  The  Malthusian  Model
• High Fertility: the Debate

5  Human Capital

•  Education and Health
•  Child Labor
• The Gender Gap in Education and Health
• Educational and Health Systems: Social versus Private Benefits

6 Insitutions and Economic Development

•Political Institutions

•Legal and Fiscal Institutions

7  Trade and  Globalization

• Relative Factor Endowments and International Specialization: The Neoclassical Model
• Trade and Resource Growth: North-South Models of Unequal Trade
• Trade and New Growth Theory

8 Finance and Development

• Limits of credit markets
• Informal credit
• Microfinance

9  The Environment and Development

• Environmental Accounting
• Environment Relationships to Population, Poverty, and Economic Growth
• Economic Models of Environmental Issues

10 Foreign Aid

• Is Aid good for growth?,
• Why Donors Give Aid
• Different Kinds of Aid


Grades: In the two hour final examination there will be a mix of short answers (including multiple choice), and essay answers based on chapters 1-6 and 8 of Todaro-Smith . If less than five students register for a session the examination will be oral ( with similar kinds of questions).. For attending students oral presentations of research projects, prepared under the supervision of the module convenor may substitute part of the final examination.