BSc International Business, Finance and Economics with Industrial/Professional Experience
Year of entry: 2020
Course unit details:
Development Economics IIB
|Unit level||Level 2|
|Teaching period(s)||Semester 2|
|Available as a free choice unit?||Yes|
This course aims to develop students’ understanding and knowledge of theoretical and empirical Development Economics. It is done so from the perspective of inequality and poverty. We shall cover a diverse range of topics linked to the notion of income distributional that includes the role of human capital, and institutions. Students will also learn about the measurement and causes of poverty and inequality leading to discussion on policies to reduce poverty and inequality. Even though it is not necessary to successfully complete the course to be familiar with calculus and some basic econometrics, you will be required to have a basic knowledge of both.
If you have any questions or concerns about this at any point during the course, please contact me and we can arrange a meeting or come to my office during my office hours(to be confirmed). I also advice those who have never done Mathematics and/or Econometrics before to see me within the first couple of weeks.
|Unit title||Unit code||Requirement type||Description|
|Microeconomic Analysis 1||ECON10171||Pre-Requisite||Compulsory|
|Introductory Statistics for Economists||SOST10062||Pre-Requisite||Compulsory|
(ECON10171 or ECON10221 or ECON10331) and (ECON10061 or ECON1007) and ( SOST10062 or ECON10072)
• To familiarise students with the theoretical and empirical aspects of economic development faced by less developed countries (LDCs);
• To provide students with key concepts of Development Economics examined through the prism of poverty and inequality
• To provide students with the basic skills required for the development of an independent understanding of current issues in Development Economics.
• Explain the key issues in developing countries making reference to the existing theoretical and empirical literature;
• Assess critically the factors and policies influencing poverty an inequality;
• Demonstrate their understanding of the changing nature of global inequality and poverty;
• Express ideas coherently in writing.
The Unit should cover the following broad topics
Topic 1 Concepts and Measurement
- different measures of inequality and poverty and their properties;
- discuss the changing nature of inequality and poverty in the world
- case studies from World Bank.
Topic 2 Explaining inequality and poverty: theory and evidence
- human capital model: role of education and skills
- labour market institutions (union, minimum wage, etc.)
- analytical and empirical evidence linking inequality, poverty and economic growth
Topic 3: Policy: changing policy environment over the last three decades
- UN Millennium Development Goals;
- World Bank poverty initiative;
- Child Poverty act of UK;
- Cash transfer programmes in Latin America
Topic 4: Broader Notion of Well-being
- Multi-dimensional Approach
- Basic Needs
- Functionings and Capabilities
Teaching and learning methods
Lectures and tutorial classes.
- Analytical skills
- Synthesis and analysis of data and information. Critical reflection and evaluation. Decision-making.
- Problem solving
- Planning independent research. Using library, electronic and online resources.
For information about feedback please follow this link:
14% Mid-term exam
- Tutorial feedback.
- Office hours.
- Revision sessions.
The basic textbook for this module is:
Debraj, R. (1998), Development Economics, last edition, Princeton University Press.
Deaton, A. (2013) The Great Escape: Health Wealth and the Origins of Inequality, Princeton University Press
Sen, A (2001) Development as Freedom, (Second Edition), Oxford University Press
Lecture 1: Introduction: What is Economic Development? Overview.
BOOK: Ray (Ch. 2);
Basu, K. and Maertens, A. (2007). The pattern and causes of economic growth in India. Oxford Review of Economic Policy, 23: 143–167.
Banerjee, A.V. and Du¿o, E. (2007). The Economic Lives of the Poor. The Journal of Economic Perspectives. 21(1):141–167.
Sen, Amartya. (1988). The Concept of Development. Chapter 1 in Handbook of Development Economics (1988), Vol. I, edited by Chenery, H. and Srinivasan, T. N.
Lecture 2: The Family and how the members make decisions.
A Cournot–Nash Model of Family Decision Making, The Economic Journal Volume 111, Issue 474, pages 722–748, October 2001
Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa, Duflo (2003), World Bank Economic Review.
Gender, Agricultural Production and the Theory of the Household, Chris Udry, Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-46, October, 1996.
Lecture 3: Education and the role of Human Capital in the growth process.
BOOK: Ray (Ch. 4-5);
Du¿o, E. (2001). Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment. American Economic Review, 91(4): 795–813.
Galor, O. and Zeira, J. (1993). Income Distribution and Macroeconomics. Review of Economic Studies, 60(1): 35–52.
Lecture 4: Foreign Aid for Development.
Robinson, S. and F. Tarp (2000), A Foreign Aid and Development: Synthesis in F. Tarp and P. Hjertholm (editors), Foreign Aid and Development: Learnt and Directions for the Future, Routledge, London and New York.
Burnside, G. and D. Dollar (2000), “Aid, Policies and Growth”, American Economic Review, pp.847-868.
Hansen, H. and F.Tarp, (2000), “Aid effectiveness disputed”, Journal of International Development, Vol. 12 (3), pp. 375-98.
Alesina, A. and D. Dollar (2000), "Who Gives Foreign Aid to Whom and Why?”, Journal of Economic Growth, Vol.5, No.1, pp.33-63.
Lecture 5: Land and Asymmetries in Information: ownership, tenancy and land rental contracts
BOOK: Ray (Ch. 12)
Banerjee, A., Gertler, P., and Ghatak, M. (2002). Empowerment and Ef¿ciency: Tenancy Reform in West Bengal. Journal of Political Economy, 110(2):239–80.
Besley, T. and Burgess, R. (2000). Land Reform, Poverty Reduction, and Growth: Evidence from India. The Quarterly Journal of Economics, 115(2): 389–430.
Lecture 6: Rural and Urban Context: formal and informal sector and the interaction between the two.
BOOK: Ray (Ch. 10-11)
Lecture 7: Credit Market and Insurance: theories of informal credit markets
BOOK: Ray (Ch. 14-15)
Ghosh, P., Mookherjee, D., & Ray, D, (2000). Credit Rationing in Developing Countries: An Overview of the Theory. Chapter 11 in Readings in the Theory of Economic Development, edited by Mookherjee, D. & Ray, D., London: Blackwell, pages 383–301
Burgess, R., and R. Pande (2005). Do rural banks matter? Evidence from the Indian social banking experiment. American Economic Review 9
|Scheduled activity hours|
|Assessment written exam||1.5|
|Independent study hours|
|Indranil Dutta||Unit coordinator|