Economics of Development
Econ 406
Spring 2012
Instructor: Chris Marmé
Office Carlsson Evald 115
Office Phone: 7514
Email:
chrismarme@augustana.edu
Required Text: Ray, Debraj, Development Economics, Princeton University Press Hall, 1998, 1st ed.
Recommended supporting texts:
Course objectives. Development Economics applies economic principles to very real world problems and, of necessity, forces the student out the narrow confines of economics. History, anthropology, political theory, geography, environmental studies, ethics, and many more areas are all fair game. Within this broad framework, this course will pursue six major goals: (1) To introduce you to how the economies of Latin America, Africa and Asia function. (2) To introduce you to the cultures and histories of these regions as well as the entire world economy. (3) To encourage you to develop the skills to think as objectively and as clearly as possible about the explosive issues of poverty, inequality, corruption, political repression, and globalization. (4) To consider the questions of what development means, its costs and benefits and what personally and socially is lost as societies become increasingly urbanized, extended families become less common, and the range of goods and services within the reach of the average person's budget increases.(5) To show how economic concepts mastered in principles of economics are used or applied to address these issues. (6) To further strengthen your critical thinking skills.
Proposed course schedule and readings:
Week 1
Ray Chapters 1 and 2. Introduction. (1) Why study development? (2) Structural change and economic growth:
The costs and benefits of development (personal and societal ) (3) Measuring economic development.
Link here for a general introduction to development (from New School for Social Research)
Comparison of living standards (Material World)
Weeks 2-6 .
Ray Chapters 3-4-5 and supplementary material. Models of Economic growth.
Click here for help visualizing the Solow model.
The debt that the west owes China for technology.
Ray Chapter 4. New theories of economic growth.
Follow this link to read the classic paper on IRTS by Allyn Young
WDR 1998/1999 Knowledge for Development on the role of technology and human capital.
Mankiw, Romer and Weil paper referred to in text and in lecture.
World Bank's website on education.
Ray Chapter 5. History, Expectations and Development. Feedback effects.
Week 7 Ray Chapter 9. Population growth
For more information on population control and support for education:
Weeks 7-8 .
Ray Chapters 6-8. Inequality and Poverty.
Weeks 8-9.
Ray Chapters 11-14. Land, Labor and Credit in Developing Countries.
Weeks 9-10.
Ray Chapter 10. Rural urban migration.
Ray Chapters 16 and 17. International Trade, Trade Policy, and globalization..
Useful links
Course Grade:
Paper 20%. (200 points)
A note on the term paper: The type of paper you write for this class will depend on whether or not you are taking ECON 406 to complete a major in Economics, using this course as a substitute for a capstone class for another major, or are instead taking this class for other reasons. Economics majors' papers must be theoretical, must include a literature review, and must have an empirical component. Those taking this to fulfill the requirements for a capstone experience are expected to incorporate material covered in their major courses (Business Administration, Art, Theatre, Environmental Studies) in this paper. Non-majors' papers can be more descriptive in nature and definitely need not include either a literature review or an empirical component. All papers however must be directly related to the readings and what we have discussed in class. Also all papers must carefully consider how we live our lives in economically more developed countries, how this may differ from how life has to be lived, and whether we would or would not make the same kind of life choices that people in economically less developed countries make (particularly the poor). The paper can focus, but need not, focus on the country you have adopted on the first day of class. An outline of your paper is due Thursday April 12 (Thursday of week 6) and a draft of your paper is due Thursday April 26th (Thursday of week 8). The final paper is due finals week. Exact due date to be announced.
Class works, problem sets, class participation. 20% (200 points) (The nature of these assignments will depend on whether you are taking this class to fulfill the requirements for a major in Economics or you are taking this class for other reasons. Some of these assignments will involve the country you have adopted on the first day of class.) PLEASE CHECK MOODLE FOR A DISCUSSION OF HOW PARTICIPATION IS MEASURED AND MY POLICY ON ATTENDANCE.
Midterm exam: 30% of grade. (300 points) Thursday April 5th.
Comprehensive final: 30% of course grade (300 points). Takehome Due finals week. Exact due date to be announced.