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Development Economics

Development Economics (Winter term 2015-16)


Time and place

Lecture (LSF)

Tuesday 
14:00 - 16:00 c.t.
H-C 7325


Tutorial (
bi-weekly) (LSF)

Monday                 
14:00 - 16:00 c.t.
H-C 7325

News

 

Content










































The course aims at providing students with a basic understanding of the major development problems in the non-developed world and which instruments are discussed to solve these problems. The course hence focuses on the analysis of underdeveloped, developing and transition economies. A major topic is understanding underdevelopment and poverty, and how a positive economic development in these regions of the world might be generated, respectively which conditions may increase the probability of a successful development. Given the huge diversity of the problems and aspects, the lecture can only serve as an introduction to selected major topics in development economics.

Preliminary Syllabus

1. Introduction
Basu (2003: Chapt. 1); Ray (1998: Chapt. 1); Siemers (2005: Chapt. 1.2); Todaro
and Smith (2011: Chapt. 1)

2. Some Issues and Facts about Underdevelopment
Ray (1998: Chapt. 2)

3. Poverty Traps: First-Generation Theories
Basu (2003: Chapt. 2); Siemers (2005: Chapt. 1.3); Todaro and Smith (2011:
Chapt. 3)

4. Poverty Traps: Contemporary Theories
Basu (2003: Chapt. 2); Siemers (2005: Chapt. 1.3); Todaro and Smith (2011:
Chapt. 4)

5. Inequality and Development
Ray (1998: Chapt. 7); Galor and Zeira (1993)

6. Tax-Benets Schemes to Overcome Poverty Traps
Bell and Gersbach (2009)

7. Land Reform
Gersbach and Siemers (2010)

8. Rural-Urban Interactions
Basu (2003: Chapt. 8); Ray (1998: Chapt. 10); Todaro and Smith (2011: Chapt. 7)

9. Development and Institutions
Acemoglu and Robinson (2010); Drazen (2000); Gersbach and Siemers (2012);
Knack and Keefer (1995); Persson and Tabellini (2000); Rodrik et al. (2004)

Slides
 
Exercises and solution hints
 

Literature












































































Reading

For each topic, the relevant literature will be named in the lecture (see also above in the table of content). The lecture is geared by Basu (2003) and Ray (1998), where the majority of chapters is formally elaborated. A further classic text book is Todaro and Smith (2011), which covers the topics in less mathematical form. However, single topics are solely covered by journal articles or other books. The major literature is available at the university library. It is expected that the students read the respective pages in at least one of the named works. Studying the lecture/tutorial notes is usually not sufficient.

References

Acemoglu, D., Johnson, S. and Robinson, J. A. (2001). The colonial origins of comparative development: an empirical investigation, American Economic Review 91(5): 1369-1401.

Acemoglu, D. and Robinson, J. (2010). The role of institutions in growth and development, Review of Economics and Institutions 1(2): Article 1.

Acemoglu, D. and Robinson, J. A. (2000). Political losers as a barrier to economic devel- opment, American Economic Review 90(2): 126-130.

Acemoglu, D. and Robinson, J. A. (2006). Economic Origins of Dictatorship and Democ- racy, Cambridge University Press.

Agénor, P.-R. and Montiel, P. J. (2008). Development Macroeconomics, 3rd edn, Princeton University Press.

Banerjee, A. V. and Duflo, E. (2011). Poor Economics - A Radical Rethinking of the Way to Fight Global Poverty, Public Affairs.

Basu, K. (2003). Analytical Development Economics - The Less Developed Economy Revisited, MIT Press.

Bell, C. (2003). Development Policy as Public Finance, Oxford University Press.

Bell, C. and Gersbach, H. (2009). Child labor and the education of a society, Macroeco- nomic Dynamics 13(2): 220-249.

Drazen, A. (2000). Political Macroeconomics, Princeton University Press.

Easterly, W. (2002). The Elusive Quest for Growth Economists' Adventures and Mis- adventures in the Tropics, MIT Press.

Galor, O. and Zeira, J. (1993). Income distribution and macroeconomics, Review of Economic Studies 60(1): 35-52.

Gersbach, H. and Siemers, L. (2010). Land reforms and economic development, Macroe- conomic Dynamics 14(4): 527-547.

Gersbach, H. and Siemers, L. (2012). Can democracy induce development? A constitu- tional perspective, Public Choice (in press).

Knack, S. and Keefer, P. (1995). Institutions and economic performance: Cross-country tests using alternative institutional measures, Economics and Politics 7(3): 207-227.

Montiel, P. J. (2011). Macroeconomics in Emerging Markets, 2nd edn, Cambridge Univer- sity Press.

Persson, T. and Tabellini, G. (2000). Political Economics - Explaining Economic Policy, MIT Press. There is a reprint from 2002.

Ray, D. (1998). Development Economics, Princeton University Press.

Rodrik, D., Subramanian, A. and Trebbi, F. (2004). Institutions rule: the primacy of insti- tutions over geography and integration in economic development, Journal of Economic Growth 9(2): 131-165.

Siemers, L.-H. (2005). How to Overcome Poverty by Education, University Library Hei- delberg. Available at http://www.ub.uni-heidelberg.de/archiv/5363/.

Todaro, M. P. and Smith, S. C. (2011). Economic Development, 11th edn, Addision- Wesley, Pearson.

 
 
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