Development Economics

  • Overview

Whereas the world have experienced an impressive process of wealth accumulation during the past two centuries, significant parts of it remain in poverty. Economic and social progress is substantially lower in developing countries despite international aid and governments’ efforts. Why these countries are still poor? What factors affect the ability of these countries (and their people) to catch up with the developed world? What kind of interventions are more effective in helping people in the developing world to escape poverty?

This course will provide tools to answer these questions and discuss the existing evidence with regard of why poverty is so persistent in the developing world. It will offer a quantitative-based introduction to the field of development economics for undergraduates. Development economics uses economic theory and empirical methods to study one of the fundamental questions of the social sciences: why some countries are poor and what it can be done to overcome economic backwardness?. Consequently, this curse will cover economic models to understand development problems as well as the use of econometric techniques to provide empirical evidence to quantify the magnitude of economic underdevelopment or to evaluate what works and what does not work in terms of policies and programs to combat poverty.


  • Lectures

Lecture 0: Course Introduction

Lecture 1: Introduction to Development Economics

Lecture 2: Well-being (People)

Lecture 3: Well-being (Countries)

Lecture 4: Review of Empirical Methods

Lecture 5: Economic Growth

Lecture 6: Poverty and Vulnerability

Lecture 7: Inequality

Appendix Lecture 7: Distributive Justice and Development

Lecture 8: Development Project Design

Appendix Lecture 8: Example of Cost-Effectiveness Analysis

Lecture 9: Labor Market

Lecture 10: Credit Market

Lecture 11: Research Designs

Experiment / RDD / DID

  • Policy Briefs

Policy Brief 1: Review of Empirical Methods

Policy Brief 2: Final Revision

  • Empirical Problem Sets

Problem Set 1: Experiments in Development

Data Files: PS1_Thorton (2008).dta

Problem Set 2: Poverty and Inequality

Data Files: poverty_mexico.dta

  • STATA lab sessions

Lab 1: Introduction to STATA.

Data Files: DataFinal_ENCEL07.dta / Example.xls / Additional.dta

STATA Reviewenaho01-2011-200.dtasumaria-2011.dta

Lab 2: Review of Empirical Methods

Data Files: Evaluation.dta

Lab 3: Growth Regressions

Data Files: Mankiw et al (1992)

Lab 4: Poverty

Data Files: Sumaria / Enaho100

Lab 5: Inequality

Data Files: Sumaria

  • Resources

Evolution of well-being in the world: GAPMINDER

Development Data: World Bank Development Indicators