Development economics (2014/2015)

Course partially running (all years except the first)

Course code
Federico Perali
Academic sector
Language of instruction
Teaching is organised as follows:
Activity Credits Period Academic staff Timetable
lezione 1 8 secondo semestre Federico Perali
lezione 2 1 secondo semestre Roberto Ricciuti

Lesson timetable

Learning outcomes

The Development economics course is devoted to the microeconomic analysis of property rights, education and human capital, social capital, land markets and land reform, credit markets and households economics. The working of these institutions is swown to be fundamental in the process of growth and development.


Syllabus – Development Economics

Prof. Federico Perali and Prof. Roberto Ricciuti

1 Economic Development and Growth
Exercises: economic development and growth

2 History and Development
Income polarization and property rights
History, property rigths and development
Exercises:hystory and development

3 Human capital, Social capital, education and growth
The role of human capital
Education, technological change and labor MKT
Social capital
Learning by doing and learning from others: human capital and technical change in agriculture
Exercises: human capital, education and growth file

4 Inequality, Poverty and Development
Lecture 1) Inequality, poverty measurement.
Lecture 2) Equality of opportunities, growth and development
EOp and development in Brazil: Ferreira
Implementing EOp: Dardanoni, Roemer et al.
Introducing luck in EOp theory: Lefranc et al.(2010)
A short survey on inequality and EOp presentazione Powerpoint
Exercises: inequality, poverty and development file

5 Household Economics and Dual Sector Models
Household Enterprise
Household models - De Janvry and Saudolet
Household Economics file

6 Dual Models: rural-urban migration
Lewis-Fei-Ranis Dual Model
Dualism and Migration
Harris&Todaro Model of Migrat
Migration in China
Harris&Todaro Model of Migration revisited
Exrcises Rural-Urban Dual Economies
Dual Economy

7 Land: contracts, incentives, and inequality
Property rights
Land reform, property rights and the Social Doctrine of the Church
Sharecropping and interlinking markets
Incentives and Risk Sharing in Sharecropping
Informational Rents and Property Rights in Land
Exercises: Land, contracts, property rights

8 Labor: Failures and efficiency
Incomplete labor markets
A Theory of Two-tier Labor Markets
Inequality as a determinant of malnutrition and unemployment
Exercises: Labor Market Failures file

9 Credit Markets
Reading Papers
Access to capital and Agrarian Organisation - Eswaran and Kotwal
Eswaran and Kotwal credit and endogenous class formation
Transaction costs and agrarian institutions
Credit rationing and class differentiation: an example of a term paper
Matching tenancy
Credit rationing in developing countries
Credit Markets
Economics of lending with joint liability
Simulation Exercise
Exercises: credit markets
Productivity, land reform and interlocked factors

Impact evaluation of large development projects: the case study of the Jenin sustainable industrial area
I/O analysis presentazione Powerpoint
Jenin development project

Assessment methods and criteria

two-hour examination