47730 - Development Economics I

Learning outcomes

The course provides the students with an introduction to key concepts in the field of development economics. We will discuss the meaning of the term 'development' from a macroeconomic perspective, and consider the main issues surrounding its measurement. We will dwelve into the determinants of a country's income, and consider their implications for the international distribution of income. We will then consider the role of alternative macroeconomic policies and the effects of international economic integration on the prospects for income convergence across countries. By the end of the course, the student: knows the main theoretical approaches to defining and measuring human development; understands what private-sector forces drive the creation of income; understands how the effects of monetary and fiscal policy on income growth unfold; understands the relation between trade policy and economic development; is capable of critically assessing the role of macroeconomic policies and the effects of international economic integration on the process of development.

Course contents

Topics outline

1. Introduction: development at large

2. Demographic challenges to development

3. Global income inequality and global poverty

4. Chronic poverty

5. Selected topic on inequality: women empowerment and economic development

6. Behavioral foundations for economic development

7. Economic lives of the poor

8. Lack of hope and persistent poverty

 

Description

The aim of the course is to provide the foundations for understanding alternative issues about key themes in development economics. We shall start by providing an introduction to main theory underlying a widely-accepted definition of economic and social development. We will then turn to the implications of changes in population structure across developing countries. Empirical facts about income inequality and poverty on a global scale will be presented, which will set the stage for a discussion on chronic poverty. Since gender differences are typically associated with income inequality, we will consider the role of women empowerment for the economic and social development. Finally, we shall dwelve into the behavioural approach to development economics. We will then consider two topics that fall into this recent field of study. We shall discuss the key empirical facts about the economic lives of the poor across developing countries. We will also consider the effects of perception about lack of hope on persistent poverty.

Readings/Bibliography

The mandatory/required readings for ALL the students:

Book: Mind, society and behaviour, The World Bank, Part 1, ONLY Chapters 1-4

Articles:

Global poverty What do we know? Why do estimates vary so much?, Andy Sumner, WIDER Background Note, 11/25

Global Income Inequality in Numbers: in History and Now, Branko Milanovic, Global Policy Volume 4, Issue 2, May 2013

Conceptualizing chronic poverty, David Hulme and Andrew Shepherd, World Development Vol. 31, No. 3, Pages 403–423, 2003

Defining and measuring human development, Chapter 1, Human Development Report 1990, Pages 9-16

Economic Growth and the Demographic Transition, David E. Bloom, David Canning and Jaypee Sevilla, NBER Working Paper No. 8685, December 2001

The Demographic Transition: Three Centuries of Fundamental Change, Ronald Lee, Journal of Economic Perspectives, Volume 17, Number 4, Fall 2003, Pages 167-190

Human values and the design of the fight against poverty, Esther Duflo, Tanner Lectures, May 2012

The Economic Lives of the Poor, Abhijit V. Banerjee and Esther Duflo, Journal of Economic Perspectives, Volume 21, Number 1, Winter 2007, Pages 141-167

Women’s Empowerment and Economic Development, Esther Duflo, NBER Working Paper No. 17702, December 2011, Revised January 2012

Teaching methods

The course will consist in a set of three-hour lectures.

The classes will provide the opportunity both to facilitate the interaction between the professor and the students, and to stimulate the debate among students themselves. In this sense, class attendance is critical to take full advantage from an in-depth discussion on the course topics.

Students are free to decide whether to attend the lectures, or not: there is no mandatory attendance for the course. Please notice that:

a. the required study literature for attending and non-attending students is different

b. the assessment of both attending and non-attending students will take the same form as detailed below.

Students with a disability or specific learning disabilities (DSA) who are requesting academic adjustments or compensatory tools are invited to communicate their needs to the teaching staff in order to properly address them and agree on the appropriate measures with the competent bodies.

All the students should keep in mind that the use of generative artificial intelligence is considered a form of plagiarism.

Assessment methods

ALL the students (regardless of class attendance) will take a two-hour written exam with questions based on the material covered in the mandatory study materials.

The written exams will take place during the standard assessment sessions scheduled by the professor throughout the academic year.

 

Grading criteria

The answers provided by the students in the written exam will be assessed based on the following.

The ability of the student to achieve a coherent and comprehensive understanding of the topics addressed, to critically assess them and to use an appropriate language will be evaluated with the highest grades (A = 27-30 con lode).

A predominantly mnemonic acquisition of the study materials, coupled with evidence of gaps and deficiencies in terms of language, critical and/or logical skills will result in grades ranging from good (B = 24-26) to satisfactory (C = 21-23).

A low level of knowledge of the study materials together with gaps and deficiencies in terms of language, critical and/or logical skills will lead a student to ‘barely pass' the exam (D = 18-20) or to a fail grade (E).

Teaching tools

The students who attend the course will be provided with a 'paper pack' including all the scientific articles, and set of slides for each lecture topic.

These materials will be made available on the Virtuale page for the course.

Office hours

See the website of Paolo Zagaglia