Руководство для студентов по курсу «Экономика развития»

Государственный университет – Высшая школа экономики

Международный институт экономики и финансов

Роман Захаренко

РУКОВОДСТВО

для студентов

по курсу

«Экономика развития»

Москва

2010

Course description and objectives

Modern world is characterized by enormous heterogeneity of living standards within and across countries. Development Economics is a one-semester course that aims to understand the causes of this heterogeneity, as well as to provide policy recommendations for reduction and elimination of underdevelopment. The course is taught in English

Course prerequisites

Prerequisites for the course are Microeconomics 1-2, Macroeconomics 1-2 and Applied Econometrics.

Studying methods

The following methods and forms of study are used in the course:

- lectures

- seminars

- home assignments

- self-study

You are encouraged to work together on homework assignments, but you must write up the assignment individually. Self-study is an extremely important element of the course.

Forms of control

Control takes the following forms:

- Homeworks – 4 total;

- One Mid-semester evaluation;

- Final exam;

- Class activity of various forms.

Grade determination

Course work mark is calculated as weighted average with the following weights:

- Written home assignments - 16%

- Class activity – 4%

- Mid-semester evaluation – 30%

- Final exam – 50%

Literature

Main reading

D. Acemoglu: Introduction to Modern Economic Growth (2008).

M. Todaro, S. Smith (TS): Economic Development, 10th edition (2008) and older. A Russian translation of the 5th edition is available in the library.

Supplementary readings

D. Ray (R): Development Economics (1998) – available in the library

K. Basu (B): Analytical Development Economics (2003)

P. Bardhan, C. Udry (BU): Development Microeconomics (1999)

Handbook of Development Economics, vols. 1-4 – available through the HSE library website

Course outline

Tentative course outline

Introduction: overview of the developing world Measures of development: income, happiness, HDI Country statistics Growth theories Harrod-Domar model Solow (1956) some empirics Multiple equilibria (TS Ch. 4, BU Ch. 16) Rosenstein-Rodan (1947) Murphy-Shleifer-Vishny (1989) O-ring theory of economic development (Kremer 1991, TS Ch. 4, B Ch. 2.4) Economics as self-discovery: Hoff 1995, Hausmann-Rodrik 2003 (TS Ch. 4, BU Ch. 14) Inequality and growth (TS Ch. 5, B Ch. 3.4) measures of inequality, empirics of inequality (Latin America, Russia) theories: Alesina-Rodrik 1994, Persson-Tabellini 1994 Migration (TS Ch. 7) rural-urban migration (Todaro); Kenya, China. Mark Rosenzweig, "Consequences of Migration for Developing Countries" 2005 Institutions: Greif 1994 Engerman-Sokoloff 1997 Acemoglu-Johnson-Robinson 2001 Nunn 2007 Guiso-Sapienza-Zingales 2008 Galiani-Schargrodsky, "Property Rights of the Poor: Effects of Land Titling," 2006. Corruption Measures of corruption Fisman and Miguel, "Cultures of Corruption: Evidence from Diplomatic Parking Tickets," May 2006 Finan and Ferrez, “Exposing Corrupt Politicians: The Effect of Brazil’s Publicly Released Audits on Electoral Outcomes” Stiglitz 1973: sharecropping and moral hazard. Grameen bank: WorldBank discussion paper 306 Knowledge diffusion. Foster-Rosenzweig 1995 (BU Ch. 12) International trade: institutions and trade (Costinot), history vs. expectations (Krugman), start-stop growth (Calvo), Helpman Networks in development: Rauch, Spolaore-Wacziarg

Distribution of hours of the course by topics and types of work

No	Topics titles	TOTAL hours	Contact hours
out of which
Lectures	Classes
1.	Introduction: overview of the developing world	4	2	2
2.	Growth theories	8	4	4
3.	Multiple equilibria	8	4	4
4.	O-ring theory of economic development	4	2	2
5.	Economics as self-discovery	4	2	2
6.	Inequality and growth	4	2	2
7.	Migration	4	2	2
8.	Institutions	8	4	4
9.	Corruption	4	2	2
10.	Adverse selection and moral hazard	4	2	2
11.	Knowledge diffusion	4	2	2
12.	International trade	4	2	2
13.	Networks in development	4	2	2
	Total:	64	32	32