8096 - DEVELOPMENT ECONOMICS

The purpose of this course is to provide students with analytical and empirical tools that enable them to understand the functioning of markets and institutions in Less Developed Countries (LDCs). The methodological approach emphasizes the role of information, incentives and limits to contracting in examining from a microeconomic point of view how LDCs cope with market imperfections. We analyze in depth the informal sector and the emergence of social norms that can be interpreted as a rational response to the economic environment. For each topic, recent theoretical contributions are proposed and compared to existing empirical evidence, in order to train the student to develop a research process that goes from the formulation to the test of hypotheses. Students are also encouraged to work directly on available data.

• Introduction: Institutions and markets in LDCs
• Economics of the family
• Land markets
• Credit markets and microfinance
• Risk sharing and insurance
• Social capital, groups and networks
• Corruption and firms' performance
• Economic causes and effects of civil conflict

The exam is written and consists of two parts: a test on the program of the course, and a takehome exam in which the students write a short essay using a dataset. Training in applied econometrics for the analysis of similar datasets is recommended, but it will also be done in class. In terms of final grade, the test on the program accounts for 80% of the grade and the takehome accounts for the remaining 20%. There will be a partial exam covering the first half of the program. The grade of the partial is valid only until the first exam of the summer session (2nd partial).  Students taking the exam in the following dates will have to cover the entire program.

• Readings will be provided at the beginning of the course.

For further and continuously updated information consult the  IEP web site or contact  S.I.D.  - Servizio Informazioni Didattica - Institute of Economics - via Gobbi, 5 - Room 313.