DEV-101 is a semester-long course that evaluates theories of economic development and scrutinizes empirical evidence to understand key features of the economic development processes across countries. The course will utilize analytical frameworks, grounded in economic theory, to examine the determinants of factor accumulation by individuals, firms and societies, and productivity and efficiency of resource allocation across activities and time. Drawing on empirical evidence and country illustrations, we will evaluate the relevance of these frameworks for diagnosing root causes of economic development and to develop an understanding of how the judicious use of theory and empirics can provide guidance for economic policy reforms. The course is organized along the following broad sections: (i) a methodological overview, with an emphasis on analytical frameworks for understanding economic growth, factor accumulation and institutional outcomes; (ii) an historical overview of comparative economic development, with focus on the Industrial Revolution, the Great Divergence, and colonialism; (iii) an analysis of individual decision-making in relevant domains, including the economics of the family, the determinants and returns to investment in human capital (health and education), and financial capital (credit markets, savings behavior), and constraints to factor accumulation; (iv) determinants of productivity, with emphasis on resource misallocation within and across households/firms, poverty traps, learning and coordination and their impacts on productivity; (v) principles of economic reform and introduction to policy design; and (vi) the role of political factors and social norms in development.
The class is a core requirement for students in the MPA/ID program. Non-MPA/ID students will not be admitted to the course. Auditors are not allowed.