Economics 720 Economic Development Prof.

Christopher Clague Nasatir Rm 318 Phone 594-5503 Home phone 858-412-3251 (not after 9PM, please!) Office Hours: TTh 2-3PM and by appointment Email: christopher.clague@gmail.com Required purchases 1. Michael Todaro and Stephen Smith, Economic Development, 11th edition, Addison Wesley, 2012. ISBN 978-0-13-801388-2 ($123 new, used paperback for less, Kindle $117) 2. Abhijit Banerjee and Esther Duflo, Poor Economics, 2011, Public Affairs, ISBN 9781-61039-093-4 (paperback) ($16 new, used for less) 3. Course Reader, containing exercises, tables and sources for paper topics Grading Homework and quizzes Test 1 March 13 Paper Final exam May 13

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There will be frequent homework assignments and occasional class quizzes. Student are required to write a paper on a topic approved by the instructor. The paper will normally be an analysis of a controversial topic in economic development, based on a review of recent literature. The Reader contains some Sources for paper topics, which are suggestions of works that introduce various topics. You are not limited to these topics. Students must submit a Topic Page by March 27 (before Spring Break), and the paper itself is due by May 1. Why are some nations rich and others poor? Why have some poor nations escaped from poverty in recent decades, while others have stagnated or regressed? These questions can be addressed in the framework of production theory, focusing on physical and human capital, population growth, and technological change. They can also be addressed on a policy level: what economic policies conduce to capital accumulation and technological progress? At a deeper level, what characteristics of society lead to the policies and institutions that support economic progress? This course will consider all these perspectives, drawing on institutional and behavioral economics, social history, and political science, as well as economic history and neoclassical economic theory.

TS Chap 2 Section 2.7 Long-Run Causes of Comparative Development. Section 4. Hanushek and Woessman. 176-180 4. 83-91. including footnotes 54-82. Introduction to development economics 1. describes many references that you may want to consult later. Read the whole chapter. and Robinson.6. 530-32 3. skip 617-23. NBER wp 17716. World Bank Governance Indicators (presented in lecture) Feb 4-6 and 11-13 Weeks 2 and 3. You should read sections 1-4. Chaps 1 and 2 2. “Trade and Industrialization After Globalization’s Second Unbundling: How Building and Joining a Supply Chain are Different and Why it Matters” (chapter in Feenstra and Taylor. Chap 4. 146-49 2. the boundaries of the firm (Oliver Williamson) TEST 1 MARCH 13 . TS. Chap 12. TS. 2008. Production function approach. share cropping.2 The Solow Model. AEJ: Macro. Hsieh and Klenow. Todaro and Smith (TS). “Kremer’s O-Ring Theory”. pp. TS. Read pp. read carefully 613-17. land tenure contracts. in Handbook of Economic Growth 2005. “Institutions as a Fundamental Cause of Economic Growth”. Richard Baldwin. land reform c. 564-75. “The Role of Cognitive Skills in Economic Development” Feb 25-27 and March 4-6 Weeks 5 and 6 International Trade 1. read 593-613. JEL 46(3): 607-88. skim over 575-93. Human Capital: Cognitive Achievement 1. Chap 11.3 Endogenous Growth Theory. TS. pp. “The Washington Consensus”. 2010.Outline Jan 23 and Jan 28-30 Week 1. pp. 4. Johnson. interlinked credit and rental contracts b. Acemoglu. Globalization in an Age of Crisis. 2011. Solow model. 2(1): 207-23. TS. 150-54 3. Topics include a. Chap 9. Appendix 3. Cobb-Douglas in the Solow model. read box on Taiwan 624-30 2. physical and human capital 1. 3. Appendix 3.5. Section 11. “Development Accounting” Feb 18-20 Week 4. 2013) March 11-13 TEST 1 MARCH 13 Week 7 Agricultural Transformation and Rural Development TS.

March 18-20 Week 8 Population TS.2. 763-67 4. La Porta. TS. TS. pp. “A Pragmatic Approach to Capital Account Liberalization” 7. Shleifer. Chap 15 Sections 1 and 2. Chap 5.4 Reforming financial systems. Chap 15. “Top of the class. Box on Grameen Bank.5. Consequences of population size and of population growth d. private and social returns to education b. JEP 2006. Lopez-de-Silano. TS. Banerjee and Duflo. 157-82. 2011. 729-38 on functions of financial system and role of Central Banks 2. Banerjee and Duflo book of that title. Theories of fertility c. 373-77 Gender Gap 2. Section 15.377-86. pp. 365-68 on rates of return.3 Informal finance. pp. pp. Section 15. how education affects inequality 1. TS. pp. pp. Read the whole chapter. 241-48. Section 8. Chap 5 Section 5. Section 8. Educational Systems and Development. The economics of lending to the poor 6.4. JEP Summer 2008 22(3): 149-72. pp. Informal finance and the rise of microfinance c. 71-102 . Chap 7. “The Economic Lives of the Poor” 21(1): 141-68 MARCH 31-APRIL 4 SPRING RECESS April 8-10 Week 10 Finance and Development Topics include: a. How important is financial development in development? b. Financial sector reform and the question of open capital markets 1. Chap 4. Prasad and Rajan. 744-51 5.5. Banerjee and Duflo. TS. “The Economic Consequences of Legal Origins” April 15-17 Week 11 Education Policies Topics include a. pp. “Pak Sudarno’s Big Family” is on fertility 2. JEL 2008 46(2):285-332. Topics include a. Chap 14. Various chapters. Chap 6. Chap 8 Section 8.” pp. TS. Family planning programs March 25-27 Week 9 Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty 1. pp 739-43 3. Demographic transition b. Banerjee and Duflo. “Policy options on inequality and poverty” 3.

Rule obedience model of tax compliance c. Clague. May 13 3:30-5:30 .4 May 6-8 Week 14 REVIEW FINAL EXAM Tuesday. 2002.” esp. “Policies. Is corruption the most important barrier to development? 1. Politics. Chap 7. 253-65. “Against Political Economy” April 29-May 1 Week 13 Choice of topics Debt and Financial Crises: TS. See exercises in Reader 2. Sections 7. Prisoners Dilemma game b. “The International Campaign Against Corruption: An Institutionalist Perspective” posted on Blackboard 3. Chap 13 OR Urbanization: TS.April 22-24 Week 12 Institutional Economics and Institutional Reform Topics include a. Banerjee and Duflo. Chap 10.1-7. pp.