Muhammad Meki and others

This course covers material examined in the Microeconomic Theory paper.

The objective of the course is to provide a graduate-level introduction to the microeconomics of development and a basis for the relevant Development Economics modules. Rather than adhering to a standard textbook treatment of micro theory, the course introduces and builds on some widely used theoretical structures in development economics.

Although exact topics vary from year to year, the first half of the course typically covers topics from producer and consumer theory, risk and uncertainty, and general equilibrium and welfare. The second half of the course normally covers topics from game theory and issues related to information asymmetries. Specific topics covered in the lecture course are:

• Household models
• Uncertainty and inter-temporal decision making
• Models of firm size and structure
• Models of occupational sorting and selection
• Imperfect competition and game theory
• Asymmetric information and contract theory

Christopher Adam

This course covers material examined in the Macroeconomic Theory and International Trade paper.

The objective of the course is to provide an overview of modern open-economy macroeconomics at the graduate level, to show how this body of theory can be adapted to the characteristics of open developing economies, to provide a basis for the relevant Development Economics modules, and to equip students with tools relevant for tackling macroeconomic dissertation topics if chosen.

The principal lecture topics are:

• Long-run growth and short run shocks: an introduction to development macroeconomics
• The small open economy: dynamic models of the current account
• The small open economy: inter-sectoral allocation and real exchange rates
• Multiple agents and overlapping generations model
• Fiscal policy and public debt
• Asset markets and money in the open economy

 Paola Conconi

This course covers material examined in the Macroeconomic Theory and International Trade paper.

The objective of the course is to provide an introduction to international trade theory, focussing on the aspects that are most relevant for developing economies. Lectures will cover topics including:

• Comparative advantage and the foundation of classical trade theory
• ‘New’ trade theory: imperfect competition and heterogeneous firms

Stefan Dercon

Smallholder agriculture continues to account for a significant proportion of income and employment in developing countries. Broad-based agricultural productivity growth is one of the main components for structural transformation and poverty reduction. For example, studies show that agricultural growth is up to 3.2 times better at reducing poverty at the one dollar-a-day level than growth in non-agricultural sectors. In this course, we will discuss the key drivers of agricultural growth and their role in rural development.

Christopher Woodruff 

Lower-income countries face a dual crisis of climate and environment. South Asia and SubSaharan African countries are among the most vulnerable to climate change. Among all countries in the world, Bangladesh, Pakistan and India rank as the three countries with the worst air quality. The dual crises of climate change and environment will be solved with some combination of policy, behaviour and technology. This module will examine these challenges from the perspective of current literature in economics, focusing on a few selected topics and highlighting the role of institutions and trade.

Christopher Woodruff 

Micro- and small-scale firms dominate the private sector in low-income countries. Why do these firms fail to grow? Does too much government stifle firm growth, and chase firms into the informal economy? Or is there too little government, with no credit markets or contract enforcement to draw firms into the formal sector? This module will explore these questions with a focus on firms and their managers. We will examine the causes and consequences of informality, availability of credit for microenterprises, management of larger firms and the link between the size of markets and the size of firms

Marya Hillesland

This module surveys some of the major discussions in development microeconomics through a gender lens. The module will investigate how institutions, including gender norms, impact the way men and women participate in the formal and informal economies across different developing country contexts. It will explore the ways the household is modelled in economics and some of the implications of these different models when conducting research in development and implementing policies and programs. Additionally, it will look at issues such as livelihood strategies, asset ownership and property rights, risk sharing, asset allocation preferences, migration, poverty, and food and water security. The module will also aim to uncover the different ways gender is applied within microeconomic topics in development and discuss the normative underpinnings of these different applications.

Christian Meyer

Description: This module will focus on applied development economics research on labour markets and migration in low- and middle-income countries. We will examine the functioning of labour markets, discuss factors that hold back workers from finding (good) jobs, and review empirical development economics research on programmes and policies that aim to connect workers to jobs. We will study whether training can increase returns to labour and examine how job search assistance can help youths find jobs. An additional focus will be on voluntary and forced migration within and across borders, including the role of labour mobility in increasing incomes and emerging evidence on integrating refugees into host community labour markets.

Christopher Adam

This module is concerned with short-run macroeconomic stabilization in developing countries.  In Part I we will examine choices around the exchange rate regime which in turn influence the framework for monetary policy.  Part II will be concerned with low-income countries’ experience with stabilization, including an examination of the design of IMF programs.

The principal topics covered are principles of stabilization; exchange rate regimes and monetary frameworks; monetary policy in the small open economy; and macroeconomic models and approaches to stabilization. The lectures will draw on aspects of the macroeconomic theory course.

Sanjay Jain

Why is good economics not always good politics, specifically in the context of developing countries, where political and economic institutions, and state capacity, might be less than perfect? Virtually all economic policies have distributional implications, and create winners and losers. How do the political pressures that (potential) winners and losers bring to bear on the political process affect the adoption and implementation of economic policy?

The module will consider a number of related issues: the role of political institutions and cultural factors in long-run development; the idea of ‘political failure’; the political economy of economic policy reform; corruption: determinants and consequences, detection and prevention; politically motivated transfers and economic (in)efficiency; violent conflict, state capacity, state failure, and nation (re-)building.

Niccolò F Meriggi

The ability to collect taxes is essential for the functioning of any state and its ability to provide growth-promoting public goods. Developing countries typically collect between 10% and 20% of GDP in taxes while the average for high-income countries is at 40%. This module will explore why low-income countries tax so little. We will cover some of the key challenges they face such as the presence of weak institutions, the incidence of corruption, and the prevalence of the informal sector. In addition, we will also examine recent empirical evidence on what governments can do to improve their fiscal capacity and strengthen the Social Contract between citizens and the state.