DV2169 Economic policy analysis in international development
May not be taken with DV3044 Economics of development
Prerequisites (applies to degree students only)
DV1171 Introduction to international development.
Introduction and course overview
Introduction to quantitative analysis of development policies
Overview designed to give students a non‐technical but operational ability to read and comprehend empirical analysis commonly used in the quantitative evaluation of development policies. Each chapter will assign at least one empirical paper.
Economic Growth: Basic concepts, ideas and theories.
Neoclassical (Solow) growth and Endogenous growth models; aggregate economic growth and global inequality, poverty traps. Evidence for alternative mechanisms driving growth.
New directions in growth theory.
The implications of firm heterogeneity and 'weak links' in intermediate goods sectors. Economic Geography.
Institutions and (very) long run growth.
Institutions, human capital and long run growth, the importance of history and initial conditions
in explaining current dispersion in standards of living.
Globalization and trade theory
Ricardian comparative advantage and gains from trade, Heckscher Ohlin model, new trade theory, heterogeneous firms and new new trade theory. Empirical evidence on the effect of trade
Inflation and financial crises
Causes and consequences of inflation, balance of payments crises, Balance of payments crises and
structural adjustment; 'new style' financial and currency crises. Empirical evidence on the
effectiveness of SAPs and currency controls.
Current debate on aid effectiveness; review the emprical evidence on aid.
Alternative models of intrahousehold allocation and their gender and policy implications; Empirical example of pension reform in South Africa.
credit market imperfections and credit in poor communities; microfinance programmes; empirical evaluation of microfinance programmes.