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Syllabus, Fall 2016
John F. Kennedy School of Government
Harvard University
ECONOMIC DEVELOPMENT: THEORY, EVIDENCE AND POLICY DESIGN
PED 101
Class in Fall 2016: Monday & Wednesday 8:45-10:00am, L140
Fall Review sessions: Friday 1:15-2:30pm and 2:45-4:00pm, LAND
First day of class is Wednesday, 31st August 2016
Professor Rohini Pande
Rubenstein 318
Office hours: Mon. 10:30am-12:30pm
(sign up via website)
Assistant: Eve Margolis
Office: Rubenstein 310G
Email: [email protected]
Professor Dani Rodrik
Rubenstein 315
Office hours: Mon. 10:30am-12:30pm
(sign up on sheet outside office)
Assistant: Jessica De Simone
Office: Rubenstein 110A
Email: [email protected]
COURSE INFORMATION
PED-101 is a semester-long course that evaluates theories of economic (under)development and
scrutinizes empirical evidence in order to understand key features of the development process across
countries. To do so, the course will utilize analytical frameworks, grounded in economic theory, that
examine the determinants of factor accumulation by individuals, firms and societies. Drawing on
empirical evidence on individual and societal behavior, we will evaluate the relevance of these
frameworks for diagnosing root causes of economic development. The course has three broad sections:
(i) Analytical frameworks for understanding proximate determinants of economic growth and factor
accumulation; (ii) Individual determinants and returns to investment in human capital (health and
education), financial capital (credit markets, savings behavior) and the role of behavioral economics,
culture and governance systems in affecting individual investments; and (iii) resource misallocation,
learning and coordination and their impacts on productivity; the role of industrialization and growth
diagnostics. In the Spring, PED 102 will use these frameworks to examine the design of development
policies.
Teaching fellow: Office Hours:
Raissa Fabregas [email protected] Friday 4:10-6:10
Course assistants:
Martina Trepat [email protected]
Regina Legarreta [email protected]
Sebastian Serra [email protected]
COURSE REQUIREMENTS AND GRADING
General requirements
Students are required to attend two lectures and one class section each week. Sections will review
material covered in lecture, cover complementary material, and provide a forum to debate and discuss
questions about the material with fellow students. Students are expected to have read the required
readings before class, as lectures and class discussions will draw heavily on their key ideas and results.
Grading rubric
The course grade will be assigned based on the following components:
Seven short reading responses (7%)
Three assignments (33%)
Midterm (20%)
Final (40%)
Assignments and exams
The assignments and exams will test understanding of concepts taught in lectures and review sections,
and the ability to apply these insights to policy situations. Exam material will be taken from both the
lecture and review sections. We will have a case assignment and two joint assignments with other
required MPA/ID courses – one joint with API-209 Advanced Quantitative Methods I and one joint with
API-109 Advanced Microeconomic Analysis I. Assignments are to be submitted in the (physical)
dropbox before the first class of the day (ie. 10:10 am on Tu/Th and 8:40 am on M/W). Non-MPA/ID
students need not be enrolled in both classes. The joint assignments can be done as stand-alone PED-
101 assignments. Assignments will be returned via mail folders in the MPA/ID office area.
At seven regularly spaced intervals during the semester students will be required to provide short
responses to questions based on identified readings and lecture content. Responses will require students
to think critically about the reading and will be graded on a 0, check, check+ scale. Short responses are
to be submitted through the CANVAS system on Fridays by 5 pm on the dates indicated below.
READING LIST 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 these links. If the links become broken then you can find the articles by searching Harvard
library’s E-Journals using the following link: http://sfx.hul.harvard.edu/sfx_local/az/, which can also be
reached by the following steps: http://www.harvard.edu/ “Resources & Offices” “Library and
Academic Resources” “Find E-Journals”. Type in the journal name and select a database that has
issues for the year of the article. Each database is set up differently, but the citation will have all the
information necessary to obtain the article.
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.
ELIGIBILITY
The class is a core requirement for students in the MPA/ID program. The course is cross-listed at FAS
as Ec2326. Non MPA/ID students will be admitted only with the permission of the instructor. Students
are expected to have reasonable facility with multivariable calculus.
ACADEMIC INTEGRITY
Students are encouraged to work together and discuss class material and assignments. What is important
is the eventual understanding of material achieved, and less about how that is achieved. Any exam,
paper or assignment you submit is presumed to be your own original work, so if you do – as you will –
use words or ideas written by other people, please make sure to cite these appropriately, and to indicate
other students with whom you have collaborated. More information about Harvard’s policies on
academic integrity may be found in the Student Handbook.
IMPORTANT DATES AND COURSE STRUCTURE
Day Date Topic Professor
1 Wed Aug 31 Course Introduction Pande
2 Fri Sept 2 The evolution of thought on poverty reduction, development
and growth Pande/Rodrik
Analytical Frameworks for Development
Mon Sept 5 No Class- Labor Day
3 Wed Sept 7 Economic growth and its proximate determinants: Growth
Accounting Rodrik
Fri Sept 9 Round #1 – Send in your short response
4 Mon Sept 12 Productivity Growth: The Industrial Revolution and its Spread
Rodrik
5 Wed Sept 14 Economic Exchange, Trade and Efficiency Pande
Fri Sept 16 Round #2 – Send in your short response
6 Mon Sept 19 Resource (Mis)Allocation and Household Productivity Pande
Applying the Framework: Endowments, Investments and the Production Function
7 Wed Sept 21 Human Capital: Health- Poverty Trap Application to
Nutrition and Productivity Pande
Fri Sept 23 Round #3 – Send in your short response
8 Mon Sept 26 Human Capital: Health Returns and Constraints on
Investments. Introduction to Education Pande
9 Wed Sept 28
Human Capital: Returns to Education (Micro and Macro) and
Constraints on Accumulation
ASSIGNMENT #1 DUE
Pande
10 Mon Oct 3
Guest Lecture: Insights on Human Capital literature
Prof.Michael Kremer
Kremer/Pande
Wed Oct 5 MIDTERM
Mon Oct 10 No class – Columbus day
11 Wed Oct 12 Financial Capital: Returns to Capital and Financial Access Pande
12 Mon Oct 17 Financial Capital: Savings Accumulation Pande
Applying the Framework: Insights from behavioral economics, Culture and Governance Structures
Day Date Topic Professor
13 Wed Oct 19 Behavioral Insights for individual decision-making Pande
Fri Oct 21 Round #4 – Send in your short response
14 Mon Oct 24 Culture and Norms: An application to Gender Pande
15 Wed Oct 26 Governance and Individual Investments: Public Sector Pande
16 Mon Oct 31 Governance and Individual Investments: Private Sector
ASSIGNMENT #2 (joint with API-109) due Pande
Applying the Framework: Allocative efficiency and TFP
17 Wed Nov 2 Productivity Growth: Misallocation Rodrik
Fri Nov 4 Round #5 – Send in your short response
18 Mon Nov 7 Productivity Growth: Learning Rodrik
19 Wed Nov 9 Productivity Growth: Coordination Failures Rodrik
20 Mon Nov 14 Industrialization and Industrial Policy Rodrik
Tue Nov 15 ASSIGNMENT #3 (joint with API-209) due
21 Wed Nov 16 Industrialization and Climate Change Policy Pande
Fri Nov 18 Round #6 – Send in your short response
22 Mon Nov 21 Globalization and Economic development Rodrik
Wed Nov 23 No class
23 Mon Nov 28 Strategies of Economic Reform Rodrik
24 Wed Nov 30 Wrap up discussion Pande/Rodrik
Fri Dec 2 Round #7 – Send in your short response
Fri Dec 9
(3 – 6pm) FINAL EXAM
Readings
Required readings are marked with a star (*); recommended readings are not starred.
Most readings are available online (by clicking on the title). Readings not available online can be found
on reserve at the HKS library. See above description for more detailed instructions.
COURSE OUTLINE AND READINGS
A. Course Introduction
i. Course introduction (August 31, RP)
No readings
ii. The evolution of thought on poverty reduction, development and growth (September 2, DR/RP)
*Lindauer, David and Lant Pritchett. 2002.“What's the Big Idea?: The Third Generation of Policies
for Economic Growth”, Economía, 3(1):1-39.
*Ravallion, Martin. “Lessons from A History of thought on Poverty”, VoxEU.org, 13 August 2013
B. Analytical Frameworks for Development
i. Economic Growth and its proximate determinants: Growth Accounting (September 7, DR)
*Conference Board, Total Economy Database, Growth Accounting and Total Factor Productivity,
1990-2014. This is a database. Look at and understand the growth decompositions for four countries
that interest you.
*Caselli, Francesco. 2005. “Accounting for Income Differences Across Countries,” chapter 9 in the
Handbook of Economic Growth, Vol. 1A. P. Aghion and S. Durlauf, eds., North Holland. (On
Reserve)
Jones, Charles I. 2013. Introduction to Economic Growth (third edition). W.W. Norton, chaps. 1, 2,
3 (On Reserve)
Bosworth, Barry and Susan M. Collins. 2003. “The Empirics of Growth: An Update,” Brookings
Papers on Economic Activity, issue 2: 113-206.
Weil, David. 2007. “Accounting for the Effect of Health on Economic Growth,” Quarterly Journal of
Economics, 122(3): 1265-1306.
Mankiw, N. Gregory, David Romer, and David N. Weil. 1992. “A Contribution to the Empirics of
Economic Growth,” Quarterly Journal of Economics, 107(2): 407-437.
Hall, Robert E. and Charles I. Jones. 1999. “Why Do Some Countries Produce So Much More
Output Per Worker Than Others?” Quarterly Journal of Economics 114(1): 83-116.
Hsieh, Chang-Tai and Peter Klenow. 2007. “Relative Prices and Relative Prosperity,” American
Economic Review, 97(3): 562-585.
Clemens, Michael, Claudio Montenegro and Lant Pritchett. “The Place Premium: Wage Differences
for Identical Workers Across the US Border.” Center for Global Development Working Paper #148.
ii. Productivity Growth: The Industrial Revolution and Its Spread (September 12, DR)
*Allen, Robert C., Global Economic History: A Very Short Introduction, Oxford University Press,
2011, chapter 3, pp, 27-39.
* Mokyr, Joel, “The European Enlightenment, the Industrial Revolution, and Modern Economic
Growth,” European University Institute, Florence, 2007.
*Acemoglu, Daron, Simon Johnson, and James A. Robinson. 2002. “The Rise of Europe:
Institutional Change and Economic Growth,” American Economic Review, 95(3): 546-579.
Mokyr, Joel. 1999. “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., pp. 1-127. (On Reserve)
Clark, Gregory. 2007. A Farewell to Alms: A Brief Economic History of the World. Princeton
University Press, chaps. 10-13. (On Reserve)
Galor, Oded and Andrew Mountford. 2008. “Trading Population for Productivity: Theory and
Evidence,” Review of Economic Studies, 75(4): 1143-1179.
Engerman, Stanley L. and Kenneth L. Sokoloff. 1997. “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, and NBER Working Papers Series on Historical Factors in Long-Run Growth, No.
66, December 1994.
North, Douglass C. 1990. Institutions, Institutional Change and Economic Performance. New York:
Cambridge University Press. (On Reserve)
iii. Economic Exchange, Trade and Efficiency (September 14, RP)
* Greif, Avner. 2000. “The Fundamental Problem of Exchange,” Review of European Economic
History, 4: 251-84.
* Casson, Mark and John S. Lee. 2011. “The Origin and Development of Markets: A Business
History Perspective.” Business History Review, 85(1): 9-37.
Greif, Avner and Guido Tabellini. 2010. “Cultural and institutional bifurcations: China and Europe
compared,” American Economic Review, Papers and Proceedings, 100: 135-140.
Stiglitz, Joseph E. 1989. “Markets, market failures, and development,” The American Economic
Review, 79(2): 197-203.
Greif, Avner. 2006. “The Birth of Impersonal Exchange,” Journal of Economic Perspectives, 20(2):
221-236.
Greif, Avner. 1992. “Intuitions and International Trade: Lessons from the Commercial Revolution.”
American Economic Review, 82(2): 128-133.
Greif, Avner. 1989. “Reputation and Coalitions in Medieval Trade: Evidence on the Maghribi
Traders.” Journal of Economic History, 49(4): 857-82.
Greif, Avner and Guido Tabellini. 2012. “The Clan and the City: Sustaining Cooperation in China
and Europe,” Working paper.
Grief, Avner. 2008. “Coercion and Exchange. How Did Markets Evolve?” Working paper.
Polanyi, Karl. 1944. The Great Transformation, Beacon Press, Boston, MA.
iv. Resource (Mis)Allocation and Household Productivity (September 19, RP)
*Bardhan, Pranab and Chris Udry. 1999. “Household Economics,” chapter 2 in Development
Microeconomics. Oxford University Press. 8-18
Productivity Impacts
*Goldstein, Markus and Chris Udry. 2008. “The Profits of Power: Land Rights and Agricultural
Investment in Ghana,” Journal of Political Economy, 116(6): 981-1022.
Udry, Christopher. 1996. “Gender, Agricultural Production, and the Theory of the Household,”
Journal of Political Economy, 104(5): 1010-1046.
Investment Impacts
*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, 123(3): 1251-1285.
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,
32(4): 463-480.
C. Applying the Framework: Endowments, Investments and the Production Function
i. Human Capital: Health (September 21 & 26, RP)
Sept. 21: Health-Poverty Trap Application to Nutrition and Productivity
*Ray, Debraj (1998) “Development Economics" Princeton, NJ: Princeton University Press, 272- 279,
489-504. (On Reserve)
*Schofield, Heather (2014) “The Economic Costs of Low Caloric Intake: Evidence from India”
Working Paper.
Jensen, Robert and Nolan Miller (2011). “Do Consumer Price Subsidies Really Improve Nutrition?”
Review of Economics and Statistics, 93(4):1205-1223.
Subramanian, Shankar and Angus Deaton. 1996. The Demand for Food and Calories, Journal of
Political Economy, 104(1):133-62.
Bleakley, Hoyt. 2010. Health, Human Capital, and Development, Annual Reviews of Economics, 2:
283-310.
Sept. 26: Health Returns and Constraints on Investments
*Kremer, Michael and Edward Miguel. 2004. “Worms: Identifying Impacts on Education and Health
in the Presence of Treatment Externalities,” Econometrica, 72(1): 159-217.
*Das, Jishnu, Jeffrey Hammer and Kenneth Leonard. 2008. “The Quality of Medical Advice in Low-
Income Countries,” Journal of Economic Perspectives, 22(2): 93-114.
Dupas, P., & Miguel, E. 2016. Impacts and Determinants of Health Levels in Low-Income
Countries. Working Paper. National Bureau of Economic Research.
Kremer, Michael and Edward Miguel. 2007. The Illusion of Sustainability, Quarterly Journal of
Economics, 122(3): 1007-1065.
Cohen, Jessica and Pascaline Dupas. 2010. Free Distribution or Cost-Sharing? Evidence from a
Randomized Malaria Prevention Experiment, Quarterly Journal of Economics, 125(1), pp.1-45.
Dupas, Pascaline. 2011. “Health Behavior in Developing Countries,” Annual Review of Economics,
3: 425-449.
Almond, Douglas. 2006. Is the 1918 Influenza Pandemic Over? Long-term Effects of In Utero
Influenza Exposure in the Post-1940 U.S. Population, Journal of Political Economy, 114(4):672-
712.
ii. Human Capital: Education/Skills
Sept. 26/28: Returns to Education ( Micro and Macro) and Constraints on Accumulation (RP)
*Pritchett, Lant. 2006. “Does Learning to Add up Add up: The Returns to Schooling in Aggregate
Data.” Handbook of the Economics of Education.
Duflo, Indonesia School Paper AER
*Jensen, Robert. 2010. “The (Perceived) Return to Education and the Demand for Schooling”,
Quarterly Journal of Economics, 125(2): 515-548.
Montenegro, Claudio and Harry Patrinos, “Returns to Schooling Around the World” Background
paper for the WDR 2013.
Hanushek, Eric, Guido Schwerdt, Simon Wiederhold & Ludger Woessmann. 2013. "Returns to
Skills around the World: Evidence from PIAAC”NBER working paper 19762.
Acemoglu, Daron and Joshua Angrist. 2001. “How Large are Human Capital Externalities?
Evidence from Compulsory Schooling Laws,” NBER Macroeconomics Annual 2000, 15:9-74.
Jensen, Robert. 2012. "Do Labor Market Opportunities Affect Young Women's Work and Family
Decisions? Experimental Evidence from India," Quarterly Journal of Economics, 127(2): 753-792.
Jayachandran, Seema and A. Lleras-Muney. 2009. “Life Expectancy and Human Capital
Investments: Evidence from Maternal Mortality Declines,” Quarterly Journal of Economics, 124(1):
349-397.
*Baird, Sarah, Craig McIntosh, and Berk Ozler. 2011. Cash or Condition? Evidence from a Cash
Transfer Experiment, Quarterly Journal of Economics, 2011, Vol. 126(4), pp. 1709-1753.
Jensen, Robert & Emily Oster. 2009. “The Power of TV: Cable Television and Women’s Status in
India,” Quarterly Journal of Economics, 124(3): 1057-1094.
Oct. 3: Guest Lecture: Michael Kremer
iii. Returns to Capital and Financial Access, Savings Constraints
Oct 12: Financial Capital: Returns to Capital and Financial Access (RP)
*De Mel, Suresh, David McKenzie, and Christopher Woodruff. 2008. “Returns to Capital in
Microenterprises: Evidence from a Field Experiment,” Quarterly Journal of Economics, 123(4):
1329-1372.
*Burgess, Robin and Rohini Pande. 2005. “Do Rural Banks Matter? Evidence from the Indian Social
Banking Experiment,” American Economic Review, 95(3): 780-795.
Duflo, Esther, Michael Kremer, and Jonathan Robinson. 2008. “How High Are Rates of Return to
Fertilizer? Evidence from Field Experiments in Kenya”, American Economic Review P&P, Volume
98(2): 482-488.
Banerjee, Abhijit and Esther Duflo. 2014. Do firms want to borrow more? Testing credit constraints
using a directed lending program. The Review of Economic Studies, 81(2), 572-607.
Khwaja, Asim and Atif Mian. 2008. "Tracing the Impact of Bank Liquidity Shocks: Evidence from
an Emerging Market." American Economic Review, 98(4): 1413-42.
Udry, Christopher and Santosh Anagol. 2006. “The Return to Capital in Ghana,” American
Economic Review, 96(2): 388-393.
Paravisini, Daniel. 2008. “Local Bank Financial Constraints and Firm Access to External Finance”,
Journal of Finance, 63(5): 2161-2193.
Oct. 17: Savings Accumulation (RP)
*Ashraf, Nava, Dean Karlan and Wesley Yin. 2006. “Tying Odysseus to the Mast: Evidence from a
Commitment Savings Product in the Philippines”, Quarterly Journal of Economics 121(2): 635-672.
*Dupas, Pascaline, and Jonathan Robinson. 2013. "Why Don't the Poor Save More? Evidence from
Health Savings Experiments." American Economic Review, 103(4): 1138-71.
Miller, Margaret, Julia Reichelstein,,Christian Salas & Bilal Zia (2014), "Can You Help Someone
Become Financially Capable? A Meta-Analysis of the Literature," World Bank Policy Research
Working Paper No. 6745, January 2014
Schaner, Simone. 2015. "Do Opposites Detract? Intrahousehold Preference Heterogeneity and
Inefficient Strategic Savings." American Economic Journal: Applied Economics, 7(2): 135-74.
iv. Behavioral insights in development economics (October 19, RP)
*Berg, G., & Zia, B. 2013. Harnessing emotional connections to improve financial decisions:
evaluating the impact of financial education in mainstream media. World Bank Policy Research
Working Paper, (6407).
*Mullainathan, Sendhil (2006) “Development Economics Through the Lens of Psychology,”
Proceedings of the Annual Bank Conference on Development Economics
Allcott, Hunt, and Todd Rogers. 2014. "The Short-Run and Long-Run Effects of Behavioral
Interventions: Experimental Evidence from Energy Conservation." American Economic Review,
104(10): 3003-37.
Carroll, Gabriel D., James J. Choi, David Laibson, & Brigitte C. Madrian & Andrew Metrick,
(2009). "Optimal Defaults and Active Decisions," The Quarterly Journal of Economics, vol. 124(4),
pp 1639-1674
Datta, Saugato and Sendhil Mullainathan (2012) "Behavioral Design: A New Approach to
Development Policy." CGD Policy Paper 016.
Duflo, Esther, Michael Kremer, and Jonathan Robinson (2011) “Nudging Farmers to Use Fertilizer:
Evidence from Kenya” American Economic Review 101 (6): 2350-2390
Kaur, Supreet, Kremer, M., & Mullainathan, S. (2015). Self-control at work. Journal of Political
Economy, 123(6), 1227-1277.
Kremer, Michael, Edward Miguel, Sendhil Mullainathan, Clair Null, & Alix Peterson Zwane (2011).
"Social engineering: Evidence from a suite of take-up experiments in Kenya" Unpublished Working
Paper.
Madestam, Andreas, Daniel Shoag, Stan Veuger, and David Yanagizawa-Drott (2013) “Do Political
Protests Matter? Evidence from the Tea Party Movement” Quarterly Journal of Economics,
forthcoming
Shah, Anuj, Sendhil Mullainathan, Eldar Shafir, (2012) "Some Consequences of Having Too Little",
Science, 338(6107):682-685
Zwane, Alix Peterson (2014), “Implications of Scarcity” Science
v. Culture and Norms with an application to Gender (October 24, RP)
*Beaman, Lori, Raghabendra Chattopadhyay, Esther Duflo, Rohini Pande and Petia Topalova,
“Powerful Women: Does Exposure Reduce Bias?” Quarterly Journal of Economics, Vol. 124(4):
1497-1540.
Alberto Alesina, Paula Guiliano and Nathan Nunn (2013), “On the Origins of Gender Roles: Women
and the Plough”, Quarterly Journal of Economics, Vol 128(2)
Jayachandran, Seema. 2014. The roots of gender inequality in developing countries. National Bureau
of Economic Research, 20380.
Beaman, Lori, Esther Duflo Rohini Pande and Petia Topalova “Female Leadership Raises
Aspirations and Educational Attainment for Girls: A Policy Experiment in India,” Science Magazine,
Vol. 335 no. 6068, February 2012
Ashraf, Nava (2009). “Spousal Control and Intra-household Decision Making: An Experimental
Study in the Philippines.” American Economic Review 99(4), 1245–1277
Jayachandran, Seema and Rohini Pande .2015. “Why are Indian Children so Short?” NBER
Working Paper 21036.
(*oped version: http://www.nytimes.com/2014/08/10/opinion/sunday/the-youngest-are-
hungriest.html?_r=1&gwh=55727F844132ECA6B44CBD18F2CCF962&gwt=pay&assetType=opin
ion)
D. Applying the Framework: Allocative efficiency and TFP
ii. Governance and Individual Investments: Public Sector (October 26, RP)
*Ben Olken and Rohini Pande “Corruption in Developing Countries” Annual Review of Economics,
July 2012, Vol. 4: pp. 479-509.
Burgess, Robin, Remi Jedwab, Edward Miguel, Gerard Padro i Miquel, and Ameet Morjaria “The
Value of Democracy: Evidence from Road Building in Kenya” (with) American Economic Review
105(6): 2015.
Burgess, Robin, Matthew Hansen, Benjamin Olken, Peter Potapov and Stefanie Sieber “The Political
Economy of Deforestation in the Tropics” (with) Quarterly Journal of Economics 127 (4), 2012.
Fisman, R (2001), “Estimating the value of political connections”, American Economic Review
91(4), 1095-1102.
iii. Governance and Individual Investments: Private Sector (October 31, RP)
*Bloom, Nicholas, Benn Eifert, Aprajit Mahajan, David Mckenzie, John Roberts.2013. “Does
management matter: evidence from India”. Quarterly Journal of Economics, 128(1):1-51.
* Duflo, Esther, Michael Greenstone, Rohini Pande, and Nicholas Ryan. 2013. Truth Telling by
Third-party Auditors and the Response of Polluting Firms: Experiment Evidence from India.
Quarterly Journal of Economics, 128(4): 1499-1545.
* HKS Case: Fighting Pollution with Data: Environmental Audits and the Gujarat Pollution Control
Board. Case Number 2054.0. Available on course website.
Raymond Fisman and Yongxiang Wang. 2016. The Mortality Cost of Political Connections, Review
of Economic Studies.
Bertrand, Marianne, Simon Johnson, Krislert Samphantharak and Antoinette Schoar "Mixing Family
with Business: A Study of Thai Business Groups and the Families Behind Them" Journal of
Financial Economics, June 2008, 88(3), pp. 466-498
iv. Productivity Growth: Misallocation (November 2, DR)
* Hsieh, Chang-Tai and Peter J. Klenow. 2009. “Misallocation and Manufacturing TFP in China and
India,” Quarterly Journal of Economics, 124 (4): 1403-1448
*McMillan, Margaret, and Dani Rodrik, “Globalization, Structural Change, and Economic Growth”
in M. Bachetta and M. Jansen, eds., Making Globalization Socially Sustainable, International Labor
Organization and World Trade Organization, Geneva, 2011.
Vries, G. J. D., Timmer, M. P. & Vries, K. D., “Structural transformation in Africa: Static gains,
dynamic losses,” Groningen: GGDC, 2013.
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)
Bartelsman, Eric, John Haltiwanger, and Stefano Scarpetta. 2013."Cross Country Differences in
Productivity: The Role of Allocation and Selection” American Economic Review, 103(1): 305-334
Imbs, Jean, and Romain Wacziarg, “Stages of Diversification,” American Economic Review, 93(1),
March 2003, 63-86.
v. Productivity Growth: Learning (November 7, DR)
*Matsuyama, Kiminori, “Agricultural Productivity, Comparative Advantage, and Economic
Growth,” Journal of Economic Theory, December 1992, 317-334.
*Hausmann, Ricardo and Dani Rodrik. 2003. “Economic Development as Self-Discovery,” Journal
of Development Economics, 72(2): 603-633.
Rodrik, Dani. 2012. “Unconditional Convergence in Manufacturing,” Quarterly Journal of
Economics, February 2013.
Acemoglu, Daron, Philippe Aghion, and Fabrizio Zilibotti. 2002. “Distance to Frontier, Selection,
and Economic Growth,” NBER Working Paper No. 9066.
Aghion, Philippe, Robin Burgess, Stephen Redding, and Fabrizio Zilibotti. 2008. “The Unequal
Effects of Liberalization: Evidence from Dismantling the License Raj in India,” American Economic
Review, 98(4): 1397-1412.
Hausmann, Ricardo, Jason Hwang, and Dani Rodrik. 2007. “What You Export Matters,” Journal of
Economic Growth, 12: 1-25.
vi. Productivity Growth: Coordination Failures (November 9, DR)
*Murphy, Kevin M., Andrei Shleifer, and Robert W. Vishny. 1989. “Industrialization and the Big
Push,” Journal of Political Economy, 97(5): 1003-1026.
*Jeremy R. Magruder. 2013. “Can Minimum Wages Cause a Big Push? Evidence from Indonesia”
Journal of Development Economics, 100(1) pp 48-62.
Rodrik, Dani.1996. “Coordination Failures and Government Policy: A Model with Applications to
East Asia and Eastern Europe," Journal of International Economics, 40(1-2):1-22.
Rosenstein-Rodan, Paul N. 1943. “Problems of Industrialization of Eastern and South-Eastern
Europe,” Economic Journal, 53(210/211): 202-211.
Hoff, Karla and Joseph Stiglitz. 2001. “Modern Economic Theory and Development,” in G.M.
Meier and J.E. Stiglitz, eds., Frontiers of Development Economics. New York: Oxford University
Press, pp. 389-459.
vii. Industrialization and Industrial Policy (November 14, DR)
*Rodrik, Dani, “Industrial Policy for the Twenty-First Century,” in One Economics, Many Recipes,
Princeton University Press, Princeton, 2007, 99-152.
* Cimoli, Mario, G. Dosi, R. Nelson, and J.E. Stiglitz, “Institutions and Policies Shaping Industrial
Development: An Introductory Note,” chap. 2 in Cimoli, Dosi, and Stiglitz, eds., Industrial Policy
and Development, Oxford University Press, 2009, pp. 19-38. (On Course Website)
Rodrik, Dani, “Normalizing Industrial Policy,” Commission on Growth and Development Working
Paper No. 3, Washington, DC, 2008.
Hausmann, Ricardo, Dani Rodrik, and Charles Sabel, “Reconfiguring Industrial Policy: A
Framework with Applications to South Africa,” HKS Working Paper, 2008.
Charles Sabel, “Self-Discovery as a Coordination Problem,” chap. 1 in C. Sabel et al., eds, Export
Pioneers in Latin America, Inter-American Development Bank, 2012, pp. 1-46.
Inter-American Development Bank, Rethinking Productive Development: Sound Policies and
Institutions for Economic Transformation, Washington, D.C. 2014.
viii. Industrialization and Climate Change Policy (November 16, RP)
* Stavins, Robert N. “The Problem of the Commons: Still Unsettled After 100 Years.” American
Economic Review 101 (2011): 81–108.
*Dell, Melissa, Benjamin F. Jones, and Benjamin A. Olken. 2014. What Do We Learn from the
Weather? The New Climate-Economy Literature. Journal of Economic Literature, 52(3): 740-798.
Greenstone, Michael, Janhavi Nilekani, Rohini Pande, Nicholas Ryan, Anant Sudarshan, Anish
Sugathan. 2015. Lower Pollution, Longer Lives: Life Expectancy Gains if India Reduced Particulate
Matter Pollution. Economic and Political Weekly, L(8): 40-46. (On Course Website)
ix. Globalization and Economic Development (November 21, DR)
* Arvind Subramanian and Dani Rodrik, “Why Did Financial Globalization Disappoint?” IMF Staff
Papers, Volume 56, Number 1, March 2009, 112-138.
* Francisco Rodríguez and Dani Rodrik, "Trade Policy and Economic Growth: A Skeptic's Guide to
the Cross-National Evidence," Macroeconomics Annual 2000, eds. Ben Bernanke and Kenneth S.
Rogoff, MIT Press for NBER, Cambridge, MA, 2001.
Paul Romer, “New goods, old theory, and the welfare costs of trade restrictions,” Journal of
Development Economics, Volume 43, Issue 1, February 1994, Pages 5–38.
Dani Rodrik, “The Real Exchange Rate and Economic Growth,” Brookings Papers on Economic
Activity, 2008:2.
Dani Rodrik, The Global Governance of Trade as if Development Really Mattered, United Nations
Development Program, New York, 2001.
x. Strategies of Economic Reform (November 28, DR)
*Hausmann, Ricardo, D. Rodrik, A. Velasco, “Growth Diagnostics,” in J. Stiglitz and N. Serra, eds.,
The Washington Consensus Reconsidered: Towards a New Global Governance, Oxford University
Press, New York, 2008.
* Hausmann, Ricardo, Bailey Klinger, and Rodrigo Wagner, “Doing Growth Diagnostics in Practice:
A 'Mindbook',” Harvard CID Working Paper 177, September 2008.
Dixit, Avinash, “Evaluating Recipes for Economic Success,” Princeton University, March 2006.
Rodrik, Dani, “Understanding South Africa’s Economic Puzzles,” Economics of Transition, vol. 16,
no. 4, 2008, 769-797.
E. Wrap Up Discussion (November, 30)
Rodrik, Dani. 2008. “The New Development Economics: We Shall Experiment, but How Shall we
Learn?”
Pande, Rohini. 2016 “RCTs and the Politics of Development: How the questions we decide to ask
affect what we know and how we act”