Syllabus, Spring 2012

John F. Kennedy School of Government

Harvard University

ECONOMIC DEVELOPMENT: THEORY, POLICY AND EVIDENCE

PED 101 & Economics 2327

Class: Monday/Wednesday 11:40am-1:00pm, Starr Auditorium

Review sessions: Friday 1:10-2:30am, and/or 2:40am-4:00pm, L230

First day of class is Monday, January 23rd

Professor Rohini Pande

Rubenstein -318

Office hours: Monday 4-6 PM

(please sign up on sheet outside L-315)

Assistant: Jennifer Hoegen

Office: Rubenstein -310G

Email: Jennifer_Hoegen@harvard.edu

Professor Dani Rodrik

Littauer L-212

Office hours: Tuesday 10-11:30 am

(please sign up on sheet outside L-212)

Assistant: Julie DeBenedictis

Office: Littauer-209

Email: Julie_DeBenedictis@hks.harvard.edu

COURSE INFORMATION

This course provides a graduate-level overview of the theory of, and evidence on, economic

development and the design of development policy. The main aim is to evaluate policy design

that pertains to economic growth and development from a broad and rigorous analytical base.

Topics covered include: contemporary and historic features of development; long-run differences

in growth; investments in human and financial capital; total factor productivity; and institutional

determinants of development and governance.

Teaching fellow: Anitha Sivasankaran anitha.ped101@gmail.com Course assistants:

Augustina Schijman: Agustina_Schijman@hks12.harvard.edu

Xiaochen Fu: Xiaochen_Fu@hks12.harvard.edu

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COURSE REQUIREMENTS AND GRADING

The course grade will be based on the following, with weights in parentheses:

Mid-term examination (30%)

Final examination (50%)

Four assignments (20%)

The assignments and examinations have been designed to provide students with complimentary

(but not identical) skills for evaluating development issues and designing policy responses.

Students are expected to attend one class section on Friday; these sections will review lectures

and provide theory and econometric guidance for a better understanding of course material and

preparation for exams.

Class discussion is strongly encouraged and students should have read and bring copies of the

required reading to class.

GENERAL INFORMATION:

The reading list below indicates the URLs for those papers that can be downloaded from the

internet. The majority of the papers and articles for this course are available online and are

easily accessible through the links posted on the HKS class page. All further reading that is not

available online will be placed on reserve in the HKS library. Please check the class page

frequently for announcements and other information. (Students who register for this course

through FAS should see Julie DeBenedictis to get access to the class page.)

CROSS REGISTRATION:

The class is part of the core requirements for students in the MPA/ID program. Students in other

programs who would like to enroll in the class should attend the first class and submit a

permission to enroll form. Those not enrolled in the MPA/ID program will receive notification

on the approval to enroll in the course within 7-10 days after the course begins. Auditors will

not be allowed.

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IMPORTANT DATES AND COURSE STRUCTURE

Day Date Topic Professor

1 Mon Jan 23 Policy design for the poor: A case-study Pande & Rodrik

2 Wed Jan 25 Policy design for the poor: The big issues Pande & Rodrik

3 Mon Jan 30 Accounting for long-run income differentials Rodrik

4 Wed Feb 1 The Industrial Revolution Rodrik

5 Fri Feb 3 (1:10pm) Growth accelerations and collapses Rodrik

6 Mon Feb 6 Productivity growth through structural change Rodrik

Wed Feb 8 [Review session (in lieu of Feb. 3)]

Fri Feb 10 ASSIGNMENT 1 DUE

7 Mon Feb 13 Productivity growth through learning Rodrik

8 Wed Feb 15 Coordination failures and the “big push” Rodrik

Mon Feb 20 *** Presidents’ Day Holiday ***

9 Wed Feb 22 Human capital: Health and Education Pande

10 Mon Feb 27 Human capital: Health and Education Pande

11 Wed Feb 29 Human capital: Health and Education Pande

Fri Mar 2 ASSIGNMENT #2 DUE

12 Mon Mar 5 MIDTERM EXAM

Wed Mar 7 NO CLASS

***SPRING BREAK Mar 10-18***

13 Mon Mar 19 Financial Capital Pande

14 Wed Mar 21 Financial Capital Pande

15 Fri Mar 23 (1:10pm) Policy Interlude I – history, designing development aid Pande & Rodrik

16 Mon Mar 26 The institutional context: Families to institutions Pande

17 Wed Mar 28 The institutional context: Governance and Development Pande

18 Mon Apr 2 The institutional context: Governance reform Pande

19 Wed Apr 4 The institutional context: Governance reform Rodrik

Fri Apr 6 ASSIGNMENT #3 DUE

20 Mon Apr 9 Policy Interlude II – designing domestic institutions Pande & Rodrik

21 Wed Apr 11 Growth Strategies Rodrik

22 Mon Apr 16 The global context: Financial globalization and crises Rodrik

23 Wed Apr 18 The global context: Sustainable development Pande

24 Mon Apr 23 ASSIGNMENT #4 DUE

Mon Apr 23 Policy interlude III – designing regulatory institutions Pande & Rodrik

25 Wed Apr 25 Policy design for the poor: wrap up Pande & Rodrik

***Reading Period Begins 4/28/12-05/1/12**

FINAL EXAM TIME

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READINGS

Required readings are marked with a star (*), recommended readings are not starred.

Most readings are available online, and can be found on the class page. Readings not available

online can be found on reserve at the HKS library.

COURSE OUTLINE AND READINGS

A. Development strategies: Policy design for the poor (RP/DR, Jan. 23, 25)

Class Handout – Jan. 23rd

i. How are the poor different?

* Banerjee, Abhijit and Esther Duflo, “The Economic Lives of the Poor,” Journal of Economic

Perspectives, 2007, 21(1), 141-167.

http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.21.1.141

* Chaudhury, Nazmul, Jeffrey Hammer, Michael Kremer, Karthik Muralidharan, and F. Halsey

Rogers, “Missing in Action: Teacher and Health Worker Absence in Developing Countries,”

Journal of Economic Perspectives, Winter 2006, 20:1, 91-116.

http://pubs.aeaweb.org.ezp-prod1.hul.harvard.edu/doi/pdfplus/10.1257/089533006776526058

Svensson, Jakob, “Eight Questions about Corruption,” Journal of Economic Perspectives, 2005,

19:3, 19-42.

http://pubs.aeaweb.org.ezp-prod1.hul.harvard.edu/doi/pdfplus/10.1257/089533005774357860

Olken, Ben and Monica Singhal. “Informal Taxation,” American Economic Journal: Applied

Economics, 2011, 3 (4), pp. 1-28. http://econ-www.mit.edu/files/6398

Besley, Timothy and Torsten Persson (2011). “Pillars of Prosperity: The Political Economics of

Development Clusters.” Chapter 1 – “Development Clusters” Princeton University Press.

http://press.princeton.edu/chapters/s9624.pdf

ii. Poverty, growth, social indicators and distribution

* Pritchett, Lant, “Divergence, Big Time,” Journal of Economic Perspectives, Summer 1997. p.

3-17.

http://ezp-

prod1.hul.harvard.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=heh&A

N=4850086&site=ehost-live&scope=site

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* Ferreira, Francisco H.G. and Martin Ravallion, “Global poverty and inequality: a review of the

evidence,” Policy Research Working Paper Series 4623, The World Bank, 2008.

http://www-

wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2008/05/19/000158349_20080519142

850/Rendered/PDF/wps4623.pdf

* Deaton, Angus, "Global patterns of income and health: facts, interpretations, and policies,”

WIDER Annual Lecture, September 2006.

http://www.wider.unu.edu/publications/annual-lectures/en_GB/AL10/

Deaton, Angus, “Income, aging, health and wellbeing around the world: Evidence from the

Gallup World Poll,” in Research Findings in the Economics of Aging, David A. Wise, ed.

University of Chicago Press, 2010. (On Reserve)

Maddison, Angus, The World Economy: A Millennial Perspective, OECD Development Centre,

Paris, OECD, 2001. (On Reserve)

Dasgupta, Partha, “The Place of Nature in Economic Development,” in D. Rodrik and M.

Rosenzweig, eds., Handbook of Development Economics, vol. 5, North-Holland, 2009.

http://www.sciencedirect.com.ezp-

prod1.hul.harvard.edu/science?_ob=MImg&_imagekey=B7P5D-4YY9BJS-K-

1V&_cdi=24600&_user=209690&_pii=B9780444529442000124&_origin=browse&_coverDate

=12%2F31%2F2010&_sk=999949999&view=c&wchp=dGLbVtz-

zSkWA&md5=41ce4ca898c062138410da89a317f276&ie=/sdarticle.pdf

Bourguignon, F. and C. Morrison, “Inequality Among World Citizens,” American Economic

Review, 92 (4), 2002, pp.727-744.

http://www.aeaweb.org.ezp-

prod1.hul.harvard.edu/articles.php?doi=10.1257/00028280260344443

Basu, Kaushik, “On the Goals of Development,” in G.M. Meier and J.E. Stiglitz, eds., Frontiers

of Development Economics, New York, Oxford University Press, 2001, 61-86.

http://books.google.com/books?id=h7_VQj2OAHoC&lpg=PA61&ots=AVhCXutLNe&pg=PA6

1#v=onepage&q&f=false

B. Accounting for long-run income level differences across countries (DR, January 30)

* Caselli, Francesco, “Accounting for Income Differences Across Countries,” chapter 9 in the

Handbook of Economic Growth Vol. 1A, P. Aghion and S. Durlauf, eds., North Holland, 2005.

(On Reserve)

* Weil, David, “Accounting for the Effect of Health on Economic Growth,” Quarterly Journal of

Economics, 2007.

http://web.ebscohost.com.ezp-prod1.hul.harvard.edu/ehost/detail?hid=11&sid=19d4b35e-4ae8-

4754-8c10-

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0099c1106092%40sessionmgr13&vid=1&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaX

Rl#db=bth&AN=25953485

* Bosworth, Barry and Susan M. Collins, “The Empirics of Growth: An Update,” Brookings

Papers on Economic Activity, 2003: 2.

http://web.ebscohost.com.ezp-prod1.hul.harvard.edu/ehost/detail?hid=11&sid=942810ae-ad20-

4897-a69f-

76c89cd50afe%40sessionmgr15&vid=1&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaX

Rl#db=bth&AN=12347943

Jones, Charles I., Introduction to Economic Growth, W.W. Norton, 2002, chaps. 2, 3, and 8.

(On reserve)

Mankiw, N. Gregory, David Romer, and David N. Weil, “A Contribution to the Empirics of

Economic Growth,” The Quarterly Journal of Economics, 107(2). (May, 1992), pp. 407-437.

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/2118477

Hall, Robert E. and Charles I. Jones (1999), “Why Do Some Countries Produce So Much More

Output Per Worker Than Others?” The Quarterly Journal of Economics 114: 83-116. http://web.ebscohost.com.ezp-prod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?sid=d8d44f20-b9f6-

4f9f-b6ec-991b54f61db9%40sessionmgr104&vid=4&hid=126

Hsieh, Chang-Tai and Peter Klenow, “Relative Prices and Relative Prosperity,” American

Economic Review, June 2007.

http://pubs.aeaweb.org.ezp-prod1.hul.harvard.edu/doi/pdfplus/10.1257/aer.97.3.562

C. The growth record (DR, February 1, 3)

i. The Industrial Revolution (DR, Feb. 1)

* Mokyr, Joel, "Editor's Introduction: The New Economic History and the Industrial

Revolution,” in Joel Mokyr, ed., The British Industrial Revolution: an Economic Perspective.

Boulder: Westview Press, 2nd ed., 1999, pp. 1-127. (On Reserve)

* Clark, Gregory, A Farewell to Alms: A Brief Economic History of the World, Princeton

University Press, 2007, chaps. 10-13. (On Reserve)

Galor, Oded and Andrew Mountford, “Trading Population for Productivity: Theory and

Evidence”, Review of Economic Studies, 75(4), October 2008, 1143-1179.

http://web.ebscohost.com.ezp-prod1.hul.harvard.edu/ehost/detail?hid=21&sid=3f89a605-3d5a-

4055-be64-

4e4265c5cf6c%40sessionmgr4&vid=1&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXR

l#db=bth&AN=34188631

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Acemoglu, Daron, Simon Johnson, and James A. Robinson. 2002. “The Rise of Europe:

Institutional Change and Economic Growth,” American Economic Review, June 2005.

http://pubs.aeaweb.org.ezp-prod1.hul.harvard.edu/doi/pdfplus/10.1257/0002828054201305

Engerman, Stanley L. and Kenneth L. Sokoloff, “Factor Endowments, Institutions and

Differential paths of Growth among New World Economies: A View from Economic Historians

of the United States,” in Stephen Huber, ed., How Latin America Fell Behind, Stanford: Stanford

University Press, 1997, and NBER Working Papers Series on Historical Factors in Long-Run

Growth, No. 66, December 1994

http://www.nyu.edu/econ/user/debraj/Courses/Readings/EngermanSokoloff.pdf

North, Douglass C., Institutions, Institutional Change and Economic Performance, New York,

Cambridge University Press, 1990. (On Reserve)

ii. Growth accelerations (and collapses) (DR, Feb. 3)

* Rodrik, Dani, "Getting interventions right: how South Korea and Taiwan grew rich," Economic

Policy, April 1995, Vol. 10 Issue 1, pp. 55-107. http://web.ebscohost.com.ezp-

prod1.hul.harvard.edu/ehost/detail?hid=112&sid=ee55cc4b-7fef-4cfc-8838-

c9353c181b27%40sessionmgr115&vid=1&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1za

XRl#db=bth&AN=14809067

* Qian, Yingyi, “The Process of China's Market Transition (1978-1998): The Evolutionary,

Historical, and Comparative Perspectives.” Journal of Institutional and Theoretical Economics,

March 2000, 156(1), pp. 151-171. (Posted on course page)

* Hausmann, Ricardo, Lant Pritchett, and Dani Rodrik, “Growth Accelerations,” Journal of

Economic Growth, 10(4), December 2005, 303 – 329.

http://www.springerlink.com.ezp-prod1.hul.harvard.edu/content/p7n3578732010041/fulltext.pdf

* Jones, B. and Olken, B., “The Anatomy of Start-Stop Growth,” The Review of Economics and

Statistics, 2007.

http://www.mitpressjournals.org.ezp-prod1.hul.harvard.edu/doi/pdf/10.1162/rest.90.3.582

Kochhar, Kalpana, Utsav Kumar, Raghuram Rajan, Arvind Subramanian, and Ioannis Tokatlidis,

“India‟s Pattern of Development: What Happened, What Follows,” NBER Working Paper

12023, February 2006. http://www.imf.org/external/pubs/ft/wp/2006/wp0622.pdf

Young, Alwyn, “A Tale of Two Cities: Factor Accumulation and Technical Change in Hong

Kong and Singapore,” NBER Macroeconomics Annual, Cambridge, MA, MIT Press for NBER,

1992.

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/3584993

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Amsden, Alice H., Asia’s Next Giant: South Korea and Late Industrialization, Oxford University

Press, New York and Oxford, 1989.

http://books.google.com/books?id=f0hDv51qS6MC&printsec=frontcover&dq=asia's+next+giant

+amsden&source=bl&ots=lFzEYFM5OI&sig=ElLMI9nSiaqsjRipe80ohiaJR-

E&hl=en&ei=8oonTeyWLYL_8Abfl-

XfAQ&sa=X&oi=book_result&ct=result&resnum=1&ved=0CBgQ6AEwAA#v=onepage&q&f=

false

Bai, Chong-en, Chang-Tai Hsieh, and Yingyi Qian, “The Return to Capital in China,” Brookings

Papers on Economic Activity, 2006.

http://proquest.umi.com.ezp-

prod1.hul.harvard.edu/pqdweb?sid=1&vinst=PROD&fmt=6&startpage=-

1&clientid=18857&vname=PQD&RQT=309&did=1237298241&scaling=FULL&vtype=PQD&

rqt=309&TS=1294695153&clientId=18857

Whyte, Martin King, “A Sociological Perspective on China‟s Development Record,” Department

of Sociology, Harvard University, November 2007.

http://www.fas.harvard.edu/~asiactr/Archive%20Files/Whyte_RuleAndReformInTheGiants_Har

vard_2007.pdf

DeLong, Brad, “India since Independence: An Analytic Growth Narrative,” in Dani Rodrik, ed.,

In Search of Prosperity: Analytic Narratives of Economic Growth, Princeton, NJ, Princeton

University Press, 2003. (On Reserve)

Rodrik, Dani and Arvind Subramanian, “From „Hindu Growth‟ to Productivity Surge: The

Mystery of the Indian Growth Transition,” IMF Staff Papers, vol. 52, no. 2, 2005.

http://www.imf.org/External/Pubs/FT/staffp/2005/02/pdf/rodrik1.pdf

Easterly, William, Michael Kremer, Lant Pritchett and Lawrence H. Summers, “Good Policy or

Good Luck? Country Growth Performance and Temporary Shocks,” Journal of Monetary

Economics 32(3), 1993, 459-483.

Direct link to PDF - http://www.sciencedirect.com.ezp-

prod1.hul.harvard.edu/science?_ob=MImg&_imagekey=B6VBW-458XPFR-6-

1&_cdi=5937&_user=209690&_pii=030439329390026C&_origin=search&_zone=rslt_list_item

&_coverDate=12%2F31%2F1993&_sk=999679996&wchp=dGLbVlb-

zSkWb&md5=24339c2f4a9b87bea3f43592806a239e&ie=/sdarticle.pdf

Rodrik, Dani, “Where Did All the Growth Go? External Shocks, Social Conflict and Growth

Collapses,” Journal of Economic Growth, December 1999.

http://www.springerlink.com.ezp-prod1.hul.harvard.edu/content/gx121224uw91l321/fulltext.pdf

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D. Understanding productivity change (DR, Feb. 6, 13, 15)

i. Productivity growth through structural change (DR, Feb. 6)

* Matsuyama, Kiminori, “Agricultural Productivity, Comparative Advantage, and Economic

Growth,” Journal of Economic Theory, December 1992, 317-334. http://www.nber.org/papers/w3606

* Hsieh, Chang-Tai and Peter J. Klenow, “Misallocation and Manufacturing TFP in China and

India,” NBER Working Paper No. 13290, August 2007. https://www.nber.org/papers/w13290

* McMillan, Margaret and Dani Rodrik, “Globalization, Structural Change, and Productivity

Growth,” NBER Working Paper No. 17143, June 2011

(http://www.nber.org/papers/w17143.pdf).

Banerjee, Abhijit and Esther Duflo, “Growth Theory Through the Lens of Development

Economics,” chapter 7 in the Handbook of Economic Growth Vol. 1A, P. Aghion and S. Durlauf,

eds., North Holland, 2005. (On Reserve)

Dani Rodrik, “Unconditional Convergence,” NBER Working Paper No. 17546, October 2011

(http://www.nber.org/papers/w17546.pdf).

Harrison, Ann and Andres Rodriguez-Clare, “Trade, Foreign Investment and Industrial Policy in

Developing Countries,” in D. Rodrik and M. Rosenzweig, eds., Handbook of Development

Economics, vol. 5, North-Holland, 2009. (On Reserve)

Bartelsman, Eric, John Haltiwanger, and Stefano Scarpetta "Cross Country Differences in

Productivity: The Role of Allocative Efficiency,” November 2009.

http://www.nber.org/papers/w15490.pdf

Imbs, Jean, and Romain Wacziarg, “Stages of Diversification,” American Economic Review,

93(1), March 2003, 63-86. http://pubs.aeaweb.org.ezp-

prod1.hul.harvard.edu/doi/pdfplus/10.1257/000282803321455160

ii. Productivity growth through learning (DR, Feb. 13)

* Acemoglu, Daron, Philippe Aghion, and Fabrizio Zilibotti, “Distance to Frontier, Selection,

and Economic Growth,” NBER Working Paper No. 9066, July 2002.

http://www.nber.org/papers/w9066

* Hausmann, Ricardo and Dani Rodrik, “Economic Development as Self-Discovery,” Journal of

Development Economics, December 2003. http://www.sciencedirect.com.ezp-

prod1.hul.harvard.edu/science?_ob=ArticleURL&_udi=B6VBV-49BY2MW-

1&_user=209690&_coverDate=12%2F31%2F2003&_rdoc=10&_fmt=high&_orig=browse&_or

igin=browse&_zone=rslt_list_item&_srch=doc-

info(%23toc%235936%232003%23999279997%23455684%23FLA%23display%23Volume)&_

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cdi=5936&_sort=d&_docanchor=&_ct=11&_acct=C000014438&_version=1&_urlVersion=0&_

userid=209690&md5=518de3c8896de3bb01d6f7d36363b7d5&searchtype=a

Aghion, Philippe, Robin Burgess, Stephen Redding, and Fabrizio Zilibotti (2008). “The Unequal

Effects of Liberalization: Theory and Evidence from India,” American Economic Review, 98(4),

1397-1412.

http://search.proquest.com.ezp-

prod1.hul.harvard.edu/docview/233024458/fulltextPDF/133A8FEBA023A7436A9/8?accountid=

11311

Hausmann, Ricardo, Jason Hwang, and Dani Rodrik, “What You Export Matters,” Journal of

Economic Growth, 2007. http://www.springerlink.com.ezp-

prod1.hul.harvard.edu/content/g27l546718002473/fulltext.pdf

Cadot, Olivier, Céline Carrère, and Vanessa Strauss-Kahn, “Export Diversification: What‟s

behind the Hump?” November 2007.

http://www.hec.unil.ch/ocadot/PAPERS/Carrere_Strauss_Cadot_2007.pdf

iii. Coordination failures and the “Big Push” (DR, Feb. 15)

* Murphy, Kevin M., Andrei Shleifer, and Robert W. Vishny, “Industrialization and the Big

Push,” Journal of Political Economy, Vol. 97 (5), 1989, pp. 1003-26.

http://www.jstor.org/pss/1831884

Rosenstein-Rodan, Paul N., "Problems of Industrialization of Eastern and South- Eastern

Europe", Economic Journal, 1943. http://www.jstor.org.ezp-

prod1.hul.harvard.edu/stable/pdfplus/2226317.pdf

Hoff, Karla and Joseph Stiglitz, “Modern Economic Theory and Development,” in G.M. Meier

and J.E. Stiglitz, eds., Frontiers of Development Economics, New York, Oxford University

Press, 2001, 389-459. http://siteresources.worldbank.org/DEC/Resources/hoff-stiglitz-

frontiersofdevec.pdf

E. From growth theory to development theory: human and financial capital (RP)

Health and Education (RP, February 22, 27 and 29)

i. Poverty Traps and Returns to Health

* Subramanian, Shankar and Angus Deaton (1996), "The Demand for Food and Calories,"

Journal of Political Economy, Vol. 104 (1), pp 133-62. . http://www.jstor.org.ezp-

prod1.hul.harvard.edu/sici?sici=0022-

3808%28199602%29104%3A1%3C133%3ATDFFAC%3E2.0.CO%3B2-S

* Ray, Debraj (1998) “Development Economics" Princeton, NJ: Princeton University Press, pp

272- 279, 489-504. (On Reserve)

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Jensen, Robert T. and Nolan Miller (2008), Do Consumer Price Subsidies Really Improve

Nutrition? Kennedy School Working Paper No. RWP08-025, 2008.

http://www.hks.harvard.edu/var/ezp_site/storage/fckeditor/file/pdfs/centers-

programs/centers/cid/publications/faculty/wp/160.pdf

Bleakley, Hoyt. “Health, Human Capital, and Development”, Annual Reviews of Economics,

2010, 2: 283-310.

http://www.annualreviews.org/doi/pdf/10.1146/annurev.economics.102308.124436

Kremer, Michael and Edward Miguel , “Worms: Identifying Impacts on Education and Health in

the Presence of Treatment Externalities,” Econometrica 72(1), January 2004, pp. 159-217.

http://proquest.umi.com.ezp-

prod1.hul.harvard.edu/pqdweb?did=575939591&sid=1&Fmt=6&clientId=11201&RQT=309&V

Name=PQD

ii. Health Investments and Health Policy

Individual Behavior

*Dupas, Pascaline. “Health Behavior in Developing Countries”. Annual Review of Economics,

2011, 3: 425-449. http://www.stanford.edu/~pdupas/AR_health_behavior.pdf

Provider Behavior

Berendes S, Heywood P, Oliver S, Garner P (2011). “Quality of Private and Public Ambulatory

Health Care in Low and Middle Income Countries: Systematic Review of Comparative Studies”.

PLoS Med 8(4): e1000433. doi:10.1371/journal.pmed.1000433

http://www.plosmedicine.org/article/info%3Adoi%2F10.1371%2Fjournal.pmed.1000433

Das, Jishnu, Jeffrey Hammer and Kenneth Leonard (2008). “The Quality of Medical Advice in

Low-Income Countries.” Journal of Economic Perspectives, 22(2), pp. 93-114.

http://pubs.aeaweb.org.ezp-prod1.hul.harvard.edu/doi/pdfplus/10.1257/jep.22.2.93

Designing Health Policy

Kremer, Michael and Alaka Hola, “Pricing and Access: Evidence from Randomized Evaluations

in Education and Health”. Brookings Global Economy and Development Conference, 2008.

http://www.brookings.edu/~/media/Files/events/2008/0529_global_development/2008_kremer.p

df

*Kremer , Michael and Edward Miguel, "Illusion of Sustainability" Quarterly Journal of

Economics. vol. 122, issue 3, pages 1007-1065, 2007.

http://ezp-

prod1.hul.harvard.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=heh&A

N=25953154&site=ehost-live&scope=site

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Galiani, S., P. Gertler and E. Schargrodsky, “Water for Life: The Impact of the Privatization of

Water Services on Child Mortality,” Journal of Political Economy, 2005, Vol. 113(1), 83-120.

http://www.journals.uchicago.edu.ezp-prod1.hul.harvard.edu/doi/pdf/10.1086/426041

ii. Returns to Education

*Duflo, Esther, “Schooling and Labor Market Consequences of School Construction in

Indonesia: Evidence from an Unusual Policy Experiment,” American Economic Review, Vol. 91,

No. 4, September 2001, pp. 795-813. http://web.ebscohost.com.ezp-

prod1.hul.harvard.edu/ehost/detail?hid=105&sid=7301c2ba-d574-4680-8259-

d332c0e5c52d%40sessionmgr113&vid=1&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1za

XRl#db=bth&AN=5275744

Heterogeneity in Returns

Card, David and Alan B. Krueger (1992). "Does School Quality Matter? Returns to Education

and the Characteristics of Public Schools in the United States." Journal of Political Economy,

Vol. 100, Issue 1, p1-40.

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdfplus/2138804.pdf

Growth and Education

Foster, Andrew and Mark Rosenzweig (1996), “Technical Change and Human-Capital Returns

and Investments: Evidence from the Green Revolution”, American Economic Review, 84(4),

931-953.

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdfplus/2118312.pdf

Policy Responses:

Information

*Jensen, Robert, (2010), “The (Perceived) Return to Education and the Demand for

Schooling”, Quarterly Journal of Economics, 125(2), p. 515-548.

http://www.mitpressjournals.org.ezp-prod1.hul.harvard.edu/doi/pdf/10.1162/qjec.2010.125.2.515 Andrabi, Tahir, Jishnu Das and Asim Ijaz Khwaja (2009). “Report Cards: The Impact of

Providing School and Child Test Scores on Educational Markets.” Working Paper.

http://www.hks.harvard.edu/fs/akhwaja/papers/RC_08Oct09Full.pdf

Incentives for Parents

Schultz, T. Paul, "School Subsidies for the Poor: Evaluating the Mexican Progresa Poverty

Program," Journal of Development Economics 74(1), 2004, 199-250.

http://www.sciencedirect.com.ezp-

prod1.hul.harvard.edu/science?_ob=MImg&_imagekey=B6VBV-4BT1V2X-2-

N&_cdi=5936&_user=209690&_pii=S0304387803001858&_origin=browse&_zone=rslt_list_it

em&_coverDate=06%2F30%2F2004&_sk=999259998&wchp=dGLzVlb-

zSkzV&md5=a1b395ebd30f6daedefa00e88f27c6be&ie=/sdarticle.pdf

13

Incentives for Providers

* Duflo, Esther, Rema Hanna and Stephen Ryan, “Monitoring Works: Getting Teachers to Come

to School,” American Economic Review forthcoming, 2012. http://econ-www.mit.edu/files/5995

Muralidharan, Karthik and Venkatesh Sundararaman (2011). "Teacher Performance Pay:

Experimental Evidence from India". Journal of Political Economy, Vol. 119, No. 1, pp. 39-77.

http://econ.ucsd.edu/~kamurali/papers/Published%20Articles/Teacher%20Performance%20Pay

%20(Final%20Pre-Publication%20Version).pdf

Market Design:

*Angrist, Joshua, Eric Bettinger, and Michael Kremer, (2006). “Long-Term Educational

Consequences of Secondary School Vouchers: Evidence from Administrative Records in

Colombia,” American Economic Review. Volume 96(3), pp. 847-862.

http://pubs.aeaweb.org.ezp-prod1.hul.harvard.edu/doi/pdfplus/10.1257/aer.96.3.847

*Angrist, Joshua, Eric Bettinger, Erik Bloom, Michael Kremer and Elizabeth King (2002).

“Vouchers for Private Schooling in Colombia: Evidence from Randomized Natural

Experiments,” The American Economic Review, December, Volume 92(5), pp.1535-1558.

http://pubs.aeaweb.org.ezp-prod1.hul.harvard.edu/doi/pdfplus/10.1257/000282802762024629

Urquiola, Miguel and Chang-Tai Hsieh The effects of generalized school choice on achievement

and stratification: Evidence from Chile's school voucher program Journal of Public Economics,

90, 1477-1503, 2006.

http://www.sciencedirect.com.ezp-

prod1.hul.harvard.edu/science?_ob=MImg&_imagekey=B6V76-4J2KT82-1-

C&_cdi=5834&_user=209690&_pii=S0047272705001672&_origin=browse&_coverDate=09%

2F30%2F2006&_sk=999099991&view=c&wchp=dGLbVlW-

zSkWA&md5=e8f1187818b9e8276ea1e0d2c82f3dfe&ie=/sdarticle.pdf

************************* MIDTERM: MARCH 5 ****************************

*** NO CLASS MARCH 7 ***

*** SPRING BREAK MARCH 10-18 ***

14

F. Financial Capital (RP, March 19, 21)

Returns to Capital

*De Mel, Suresh, David McKenzie, and Christopher Woodruff (2008). “Returns to Capital in

Microenterprises: Evidence from a Field Experiment”. Quarterly Journal of Economics, vol.

123, Issue 4, pp. 1329-1372.

http://web.ebscohost.com.ezp-

prod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?vid=4&hid=7&sid=e9da28ce-ec63-4221-

8127-5ae270891302%40sessionmgr11

Udry, Christopher and Santosh Anagol (2006). “The Return to Capital in Ghana”. American

Economic Review, vol.96 Issue 2, pp.388-393.

http://web.ebscohost.com.ezp-

prod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?vid=4&hid=11&sid=f92ff736-f151-46a1-

9cd4-26e15e3b37c4%40sessionmgr12

What Constrains Credit?

*Banerjee, Abhijit, (2004) "Contracting Constraints, Credit Markets, and Economic

Development," in M. Dewatripoint, L. Hansen and S. Turnovsky, eds. Advances in Economics

and Econometrics: Theory and Applications, Eight World Congress of the Econometric Society,

Volume III. Cambridge University Press, pp. 1-46. (Posted on course page)

* Karlan, Dean and Jonathan Zinman (2009), “Observing Unobservables: Identifying

Information Asymmetries with a Consumer Credit Field Experiment,” Econometrica, Vol. 77,

No. 6, pp.1993-2008. http://onlinelibrary.wiley.com.ezp-prod1.hul.harvard.edu/doi/10.3982/ECTA5781/pdf

Aleem, Irfan (1990). “Imperfect Information, Screening and the Costs of Informal lending: A

Study of a Rural Credit Market in Pakistan,” World Bank Economic Review, Volume 4(3), 329-

349. http://wber.oxfordjournals.org.ezp-prod1.hul.harvard.edu/content/4/3/329.full.pdf+html

Debraj Ray. (1998) “Development Economics" by Princeton, NJ: Princeton University Press,

chapter 14. (On Reserve)

Improving Financial Access for the Poor

*Burgess, Robin and Rohini Pande, “Do Rural Banks Matter? Evidence from the Indian Social

Banking Experiment,” American Economic Review, 95(3), 2005.

http://pubs.aeaweb.org.ezp-prod1.hul.harvard.edu/doi/pdfplus/10.1257/0002828054201242

Morduch, Jonathan (1999), "The Microfinance Promise," Journal of Economic Literature, Vol.

37 (4), pp. 1569-1614. http://web.ebscohost.com.ezp-

prod1.hul.harvard.edu/ehost/detail?hid=105&sid=4010f7b9-62a6-4a0e-ba99-

81688423b28c%40sessionmgr115&vid=1&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1za

XRl#db=bth&AN=2730332

15

Field, Erica, Rohini Pande, John Papp and Natalia Rigol. “Debt Structure, Entrepreneurship, and

Risk: Evidence from Microfinance.” Working Paper, updated September 2011.

http://www.hks.harvard.edu/fs/rpande/papers/Debt%20Structure,%20Entrepreneurship,%20and

%20Risk_Sep2011.pdf

Dupas, Pacaline and Jonathan Robinson. “Why Don't the Poor Save More? Evidence from

Health Savings Experiments”. Working Paper, updated July 2011.

http://www.stanford.edu/~pdupas/DupasRobinson_HealthSavings.pdf

i. Policy Interlude I: history, designing development aid (RP/DR, March 23)

Besley, Tim and Robin Burgess, “Halving Global Poverty,” Journal of Economic Perspectives,

17(3), 2003. http://pubs.aeaweb.org.ezp-

prod1.hul.harvard.edu/doi/pdfplus/10.1257/089533003769204335

Hogan, Margaret C., et al. (2010). “Maternal Mortality for 181 Countries, 1980–2008: A

Systematic Analysis of Progress towards Millennium Development Goal 5”. The Lancet, vol.

375, no. 9726, pp.8-14.

http://www.sciencedirect.com.ezp-

prod1.hul.harvard.edu/science?_ob=MiamiImageURL&_cid=271074&_user=209690&_pii=S01

40673610605181&_check=y&_origin=search&_zone=rslt_list_item&_coverDate=2010-05-

14&wchp=dGLbVlV-zSkzS&md5=dbcafe46c4efcf19b440bdfe4e4be72c/1-s2.0-

S0140673610605181-main.pdf

Attaran Amir (2005). “An immeasurable crisis? A criticism of the Millennium Development

Goals and why they cannot be measured”. PLoS Med 2: e318. doi:

10.1371/journal.pmed.0020318.

McArthur J, Sachs JD and Schmidt-Traub G (2005). “Response to Amir Attaran”. PLoS Med 2:

e379. doi: 10.1371/journal.pmed.0020379.

Attaran, A (2005). “Author‟s Reply.” PLoS Medicine, Correspondence, 2(11): e405.

http://www.plosmedicine.org/article/info:doi/10.1371/journal.pmed.0020405

Sachs, Jeffrey. Millenium Villages Work: http://www.guardian.co.uk/global-

development/poverty-matters/2011/oct/13/millennium-villages-project-working-well

Clemens, Michael and Gabriel DeMombeynes (2010). “When Does Rigorous Evaluation make a

difference? The case of Millenium Villages”. Working Paper 225, Center for Global

Development.

http://www.cgdev.org/files/1424496_file_Clemens_Demombynes_Evaluation_FINAL.pdf

* Pande, Rohini, (2006), “Why Aren‟t We Achieving the Millenium Development Goals?” Book

Review for the Proceedings of Annual World Bank Conference in Development Economics,

Journal of Economic Literature.

http://www.hks.harvard.edu/fs/rpande/papers/ABCDE_review.pdf

16

Temple, Jonathan, “Aid and Conditionality,” in D. Rodrik and M. Rosenzweig, eds., Handbook

of Development Economics, vol. 5, North-Holland, 2009. (On Reserve)

Alesina, Alberto and Beatrice Weder, “Do Corrupt Governments Receive Less Foreign Aid?”

American Economic Review, 2002, 92(4), 1126-37. http://pubs.aeaweb.org.ezp-

prod1.hul.harvard.edu/doi/pdfplus/10.1257/00028280260344669

Faye, Michael and Paul Niehaus. “Political Aid Cycles.” American Economic Review,

forthcoming. http://dss.ucsd.edu/~pniehaus/papers/pac.pdf

G. The institutional context (RP, DR)

i. Families to institutions (RP, March 26)

Intra-household allocation

* Qian, Nancy (2008), “Missing Women and the Price of Tea in China: The Effect of Sex-

specific Earnings on Sex Imbalance,” Quarterly Journal of Economics, Vol. 123 (3), pp. 1251-

1285. http://www.mitpressjournals.org.ezp-

prod1.hul.harvard.edu/doi/pdf/10.1162/qjec.2008.123.3.1251

* Lundberg, Shelly J., Robert A. Pollak, and Terence J. Wales (1996). "Do Husbands and Wives

Pool their Resources? Evidence from the United Kingdom Child Benefit." Journal of Human

Resources, Vol. 32, No. 4: 463–480.

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdfplus/146179.pdf

Jayachandran, Seema and Ilyana Kuziemko (2011). “Why do Mothers Breastfeed Girls less than

Boys? Evidence and Implications for Child Health in India”. The Quarterly Journal of

Economics 126, 1485-1538.

http://qje.oxfordjournals.org/content/126/3/1485.short?rss=1&ssource=mfr

Productivity Impacts

Agriculture

* Udry, Christopher (1996), "Gender, Agricultural Production, and the Theory of the

Household," Journal of Political Economy, Vol. 104 (5), pp. 1010-1045.

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdfplus/2138950.pdf

Industry

Bertrand, Marianne, Simon Johnson, Krislert Samphantharak and Antoinette Schoar (2008).

“Mixing Family with Business: A Study of Thai Business Groups and the Families behind

them”. Journal of Financial Economics, 88(3),466-498.

http://faculty.chicagobooth.edu/marianne.bertrand/research/thai_business_jfe.pdf

17

Policy

Beaman, Lori, Esther Duflo, and Raghabendra Chattopadhyay (2008). “Powerful Women: Does

Exposure Reduce Bias?”

http://cpe.ucsd.edu/assets/002/6984.pdf

* Chattopadhyay, Raghabendra and Esther Duflo, (2004). “Women as Policy Makers: Evidence

from a Randomized Policy Experiment in India,” Econometrica, 72(5), pp. 1409-1443.

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdfplus/3598894.pdf

ii. Governance and Development (RP, March 28 & April 2)

Politician Identity Matters

* Pande, Rohini, (2003). “Can Mandated Political Representation Increase Policy Influence for

Disadvantaged Minorities? Theory and Evidence from India,” American Economic Review,

93(4), 1132-1151

http://web.ebscohost.com.ezp-

prod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?hid=104&sid=62df4712-6aa6-47cd-849b-

69b24908870f%40sessionmgr115&vid=4

Information Matters

* Finan, Frederico and Claudio Ferraz (2008). “Exposing Corrupt Politicians: The Effect of

Brazil‟s Publicly Released Audits on Electoral Outcomes,” Quarterly Journal of Economics,

123(2): 703-745.

http://web.ebscohost.com.ezp-

prod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?vid=3&hid=19&sid=8a64b301-3726-4cd7-

b35b-ba735f7d31a9%40sessionmgr14

Institutions Matter

Finan, Frederico and Claudio Ferraz (2011). “Electoral Accountability and Corruption in Local

Governments: Evidence from Audit Reports”. American Economic Review, 101, 1274-1311.

http://www.econ.berkeley.edu/~ffinan/Finan_Termlimits.pdf

McMillan, John and Pablo Zoido, (2004). “How to Subvert Democracy: Montesinos in Peru,”

Journal of Economic Perspectives, 18(4), 69-92.

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdfplus/3216793.pdf?acceptTC=true

The costs of corruption and policy responses

Olken, Benjamin and Rohini Pande (2011). “Corruption in Developing Countries”. Working

paper prepared for the Annual Review of Economics, Volume 4, August 2011.

http://econ-www.mit.edu/files/6881

Olken, Benjamin A. (2007). "Monitoring Corruption: Evidence from a Field Experiment in

Indonesia." Journal of Political Economy 115(2): 200-249.

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdfplus/10.1086/517935.pdf

18

Banerjee, Abhijit V., Selvan Kumar, Rohini Pande and Felix Su (2011). “Do Informed Voters

Make Better Choices? Experimental Evidence from Urban India”. Working paper, updated

November 2011. http://www.hks.harvard.edu/fs/rpande/papers/DoInformedVoters_Nov11.pdf

Bertrand, Marianne, Simeon Djankov, Rema Hanna and Sendhil Mullainathan. “Obtaining a

Driving License in India: An Experimental Approach to Studying Corruption”, Quarterly

Journal of Economics, 122(4) 1639-1676, 2007.

http://web.ebscohost.com.ezp-

prod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?vid=3&hid=110&sid=475b4a39-2d35-4048-

9112-aff9bb575f14%40sessionmgr114

iii. Governance reform (DR, Apr. 4)

* Djankov, Simeon, Edward Glaeser, Rafael LaPorta, Florencio Lopez-de-Silanes, and Andrei

Shleifer, “The New Comparative Economics,” Harvard University, January 2003.

http://www.economics.harvard.edu/faculty/shleifer/files/newcompecon_JCE.pdf

* McMillan, John; Woodruff, Christopher, “Private Order Under Dysfunctional Public Order.”

Michigan Law Review, August 2000, Vol. 98 Issue 8, p2421, 38p;

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdfplus/1290349.pdf

* Rodrik, Dani, “Second-best Institutions,” 2009. http://www.nber.org/papers/w14050.pdf

* Acemoglu, Daron, Simon Johnson, and James A. Robinson, “The Colonial Origins of

Comparative Development: An Empirical Investigation,” American Economic Review, 91, 5,

December 2001, 1369- 1401.

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdfplus/2677930.pdf

* Glaeser, E., R. La Porta, and F. Lopez-de-Silanes, and A. Shleifer, “Do Institutions Cause

Growth?” Journal of Economic Growth, September, 2004.

http://proquest.umi.com.ezp-

prod1.hul.harvard.edu/pqdlink?index=1&did=707256381&SrchMode=1&sid=2&Fmt=6&VInst

=PROD&VType=PQD&RQT=309&VName=PQD&TS=1296153632&clientId=18857

* Pande, Rohini and Chris Udry, “Institutions and Development: A View from Below,”

forthcoming in the Proceedings of the 9th World Congress of the Econometric Society, edited by

R. Blundell, W. Newey, and T. Persson, Cambridge University Press.

http://www.econ.yale.edu/~cru2/pdf/institutions_draft.pdf

Besley, Timothy and Maithreesh Ghatak, “Property Rights and Economic Development,” in D.

Rodrik and M. Rosenzweig, Handbook of Development Economics, vol. 5, North-Holland, 2009.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1546900##

19

Rodrik, Dani, Arvind Subramanian, and Francesco Trebbi, “Institutions Rule: The Primacy of

Institutions over Geography and Integration in Economic Development” Journal of Economic

Growth, vol. 9, no.2, June 2004.

http://proquest.umi.com.ezp-

prod1.hul.harvard.edu/pqdlink?index=0&sid=3&srchmode=1&vinst=PROD&fmt=10&startpage

=-

1&clientid=18857&vname=PQD&RQT=309&did=679243591&scaling=FULL&ts=1296153759

&vtype=PQD&rqt=309&TS=1296153771&clientId=18857

Berkowitz, Daniel, Katharina Pistor, and Jean-Francois Richard, “Economic Development,

Legality, and the Transplant Effect,” European Economic Review, 47(1), February 2003, 165-

195.

http://www.sciencedirect.com.ezp-

prod1.hul.harvard.edu/science?_ob=MImg&_imagekey=B6V64-44GMFF6-1-

7S&_cdi=5804&_user=209690&_pii=S0014292101001969&_origin=search&_zone=rslt_list_it

em&_coverDate=02%2F28%2F2003&_sk=999529998&wchp=dGLbVzz-

zSkWb&md5=dca031733d38f30f62c8a51ecd6af478&ie=/sdarticle.pdf

Kaufmann, Daniel, Aart Kraay, and Massimo Mastruzzi, “Governance Matters VI: Governance

Indicators for 1996-2006,” World Bank, July 2007.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=999979

iv. Policy interlude II: designing domestic institutions (RP/DR, April 9)

* World Bank, Economic Growth in the 1990s, Learning from a Decade of Reform, Washington

D.C. 2005.

http://www1.worldbank.org/prem/lessons1990s/chaps/frontmatter.pdf

* Easterly, William, “National Policies and Economic Growth,” in P. Aghion and S. Durlauf,

eds., Handbook of Economic Growth, vol. 1A, North-Holland, Amsterdam, 2005.

http://www.sciencedirect.com/science?_ob=MiamiImageURL&_cid=273488&_user=209690&_

pii=S1574068405010154&_check=y&_origin=&_coverDate=31-Dec-

2005&view=c&wchp=dGLbVlV-zSkWb&md5=8f8930ddeedb2f416205cb5477674ebf/1-s2.0-

S1574068405010154-main.pdf

* Sachs, Jeffrey D., John W. McArthur, Guido Schmidt-Traub, Margaret Kruk, Chandrika

Bahadur, Michael Faye and Gordon McCord “Ending Africa' s Poverty Trap,” Brookings Papers

on Economic Activity, Issue 1, 2004.

* Rodrik, Dani, “Growth Strategies,” in P. Aghion and S. Durlauf, eds., Handbook of Economic

Growth, vol. 1A, North-Holland, Amsterdam, 2005.

20

* Rodrik, Dani, “Goodbye Washington Consensus, Hello Washington Confusion?” Journal of

Economic Literature, December 2006.

http://web.ebscohost.com.ezp-

prod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?vid=5&hid=19&sid=d48f1f7d-4051-4e50-

b8d2-597895b10a15%40sessionmgr12

Williamson, John, ed., Latin American adjustment: how much has happened? Washington, DC:

Institute for International Economics, 1990.

Lora, Eduardo, “Structural Reforms in Latin America: What Has Been Reformed and How to

Measure It,” Inter-American Development Bank, Washington, D.C., December 2001a.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=909562

Loayza, Norman, Pablo Fajnzylber, and Cesar Calderon, “Economic Growth in Latin America

and the Caribbean” Stylized Facts, Explanations, and Forecasts,” World Bank, Washington,

D.C., June 2002. http://www.bcentral.cl/eng/studies/working-papers/pdf/dtbc265.pdf

Nelson, Richard R., “A Theory of the Low-Level Equilibrium Trap in Underdeveloped

Economies,” The American Economic Review, 46(5), December 1956, 894-909.

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdfplus/1811910.pdf?acceptTC=true

U.N. Millennium Project, Investing in Development: A Practical Plan to Achieve the Millennium

Development Goals, New York, United Nations. 2005.

http://www.unmillenniumproject.org/reports/fullreport.htm

Hausmann, Ricardo, Dani Rodrik, and Andres Velasco, “Growth Diagnostics,” John F. Kennedy

School of Government, Harvard University, Cambridge, MA, March 2005.

http://www.hks.harvard.edu/fs/rhausma/new/growthdiag.pdf

Collier, Paul, “Growth Strategies for Africa,” paper for the Commission on Growth and

Development, January 2007.

http://www.growthcommission.org/storage/cgdev/documents/ThemesPapers/Paper%20Collier.p

df

Hausmann, Ricardo, and Dani Rodrik. "Self-Discovery in a Development Strategy for El

Salvador." Economía - Journal of the Latin American and Caribbean Economic

Association 6(1): 43-101, 2005.

H. Growth Strategies (DR, April 11)

* Qian, Yingyi, “How Reform Worked in China,” in D. Rodrik, ed., In Search of Prosperity:

Analytic Narratives of Economic Growth, Princeton, NJ, Princeton University Press, 2003.

(On Reserve)

* Easterly, William, “National Policies and Economic Growth,” in P. Aghion and S. Durlauf,

eds., Handbook of Economic Growth, vol. 1A, North-Holland, Amsterdam, 2005. (On Reserve)

21

* Sachs, Jeffrey D., John W. McArthur, Guido Schmidt-Traub, Margaret Kruk, Chandrika

Bahadur, Michael Faye, and Gordon McCord “Ending Africa' s Poverty Trap,” Brookings

Papers on Economic Activity, Issue 1, 2004. http://www.jstor.org.ezp-

prod1.hul.harvard.edu/stable/pdfplus/3217964.pdf?acceptTC=true

* Rodrik, Dani, “Growth Strategies,” in P. Aghion and S. Durlauf, eds., Handbook of Economic

Growth, vol. 1A, North-Holland, Amsterdam, 2005. (On Reserve)

* Rodrik, Dani, “Goodbye Washington Consensus, Hello Washington Confusion?” Journal of

Economic Literature, December 2006. http://pubs.aeaweb.org.ezp-

prod1.hul.harvard.edu/doi/pdfplus/10.1257/jel.44.4.973

Lau, Lawrence J., Yingyi Qian, and Gerard Roland, “Reform Without Losers: An Interpretation

of China's Dual-Track Approach to Transition,” The Journal of Political Economy, Vol. 109, No.

1, Feb. 2000, pp. 120-143.

http://www.jstor.org.ezp-

prod1.hul.harvard.edu/stable/pdfplus/10.1086/262113.pdf?acceptTC=true

Williamson, John, ed., Latin American adjustment: how much has happened? Washington, DC:

Institute for International Economics, 1990. (On Reserve)

Lora, Eduardo, “Structural Reforms in Latin America: What Has Been Reformed and How to

Measure It,” Inter-American Development Bank, Washington, D.C., December 2001.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=909562#PaperDownload

Loayza, Norman, Pablo Fajnzylber, and Cesar Calderon, “Economic Growth in Latin America

and the Caribbean: Stylized Facts, Explanations, and Forecasts,” World Bank, Washington, D.C.,

June 2002.

http://siteresources.worldbank.org/DEC/Resources/25405_economic_growth_in_latin_america.p

df

Nelson, Richard R., “A Theory of the Low-Level Equilibrium Trap in Underdeveloped

Economies,” The American Economic Review, 46(5), December 1956, 894-909.

http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdfplus/1811910.pdf

U.N. Millennium Project, Investing in Development: A Practical Plan to Achieve the Millennium

Development Goals, New York, United Nations, 2005.

http://www.unmillenniumproject.org/reports/fullreport.htm

Hausmann, Ricardo, Dani Rodrik, and Andres Velasco, “Growth Diagnostics,” John F. Kennedy

School of Government, Harvard University, Cambridge, MA, March 2005.

http://www.hks.harvard.edu/fs/drodrik/Research%20papers/barcelonafinalmarch2005.pdf

22

Collier, Paul, “Growth Strategies for Africa,” paper for the Commission on Growth and

Development, January 2007.

http://www.growthcommission.org/storage/cgdev/documents/ThemesPapers/Paper%20Collier.p

df

Hausmann, Ricardo and Dani Rodrik, “Discovering El Salvador‟s Production Potential,”

Economia, 2003. http://www.wcfia.harvard.edu/node/722

I. The global context: financial globalization and crises (DR, April 16)

* Obstfeld, Maurice, “International Finance and Growth in Developing Countries: What Have

We Learned?” Commission on Growth and Development, Washington, DC, 2008.

http://www.growthcommission.org/storage/cgdev/documents/gcwp034web.pdf

* Kose, M. Ayhan, Eswar Prasad, Kenneth Rogoff, and Shang-Jin Wei, “Financial Globalization

and Economic Policies,” in D. Rodrik and M. Rosenzweig, eds., Handbook of Development

Economics, vol. 5, North-Holland, 2009.

http://ftp.iza.org/dp4037.pdf

* Rodrik, Dani and Arvind Subramanian, “Why Did Financial Globalization Disappoint?” March

2008.

http://www.iie.com/publications/papers/subramanian0308.pdf

Dani Rodrik, “The Future of Economic Convergence,” NBER Working Paper No. 17400,

September 2011 (http://www.nber.org/papers/w17400.pdf).

J. The global context: Sustainable Development (RP, Apr. 18)

The Problem

Duflo, Esther and Rohini Pande (2007). “Dams”. The Quarterly Journal of Economics, 122(2),

pp. 601-646. http://web.ebscohost.com.ezp-

prod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?vid=3&hid=19&sid=7090a6f0-be04-44c0-

a022-fb601611c909%40sessionmgr14

Almond, Douglas, Yuyu Chen, Michael Greenstone and Hongbin Li (2009). “Winter Heating or Clean Air?

Unintended Impacts of China‟s Huai River Policy”. American Economic Review Papers and Proceedings,

99(2): 184-190.

http://pubs.aeaweb.org.ezp-prod1.hul.harvard.edu/doi/pdfplus/10.1257/aer.99.2.184

Gertler, Paul, Orie Shelef, Catherine Wolfram, and Alan Fuchs (2011). “Poverty, Growth and the Demand for

Energy”. Energy Institute at Haas Working Paper Series, October 2011.

http://ei.haas.berkeley.edu/pdf/working_papers/WP224.pdf

23

Burgess, Robin, Matthew Hansen, Benjamin Olken, Peter Potapov, and Stefanie Sieber (2011).

“The Political Economy of Deforestation in the Tropics”.

http://econ-www.mit.edu/files/6121

Dell, Melissa, Benjamin F. Jones, and Benjamin Olken (2011). “Temperature Shocks and

Economic Growth: Evidence from the Last Half Century”. Previous version: NBER Working

Paper #14132. http://www.nber.org/papers/w14132.pdf?new_window=1

Policy Response

Aldy, Joseph E., Alan J. Krupnick, Richard G. Newell, Ian W. H. Parry, and William A. Pizer

(2010). “Designing Climate Mitigation Policy”. Journal of Economic Literature, 48:4, 903-934.

http://pubs.aeaweb.org.ezp-prod1.hul.harvard.edu/doi/pdfplus/10.1257/jel.48.4.903

i. Policy Interlude III: designing regulatory institutions (RP/DR, April 23)

K. Wrap-up (RP/DR, April 25)

To be confirmed