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

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.

IMPORTANT DATES AND COURSE STRUCTURE 1 2 3 4 5 6 Day Mon Wed Mon Wed Fri Mon Wed Fri Mon Wed Mon 9 10 11 12 Wed Mon Wed Fri Mon Wed Mon Wed Fri Mon Wed Mon Wed Fri Mon Wed Mon Wed Mon Mon Wed Date Jan 23 Jan 25 Jan 30 Feb 1 Feb 3 (1:10pm) Feb 6 Feb 8 Feb 10 Feb 13 Feb 15 Feb 20 Feb 22 Feb 27 Feb 29 Mar 2 Mar 5 Mar 7 Mar 19 Mar 21 Mar 23 (1:10pm) Mar 26 Mar 28 Apr 2 Apr 4 Apr 6 Apr 9 Apr 11 Apr 16 Apr 18 Apr 23 Apr 23 Apr 25 Topic Policy design for the poor: A case-study Policy design for the poor: The big issues Accounting for long-run income differentials The Industrial Revolution Growth accelerations and collapses Productivity growth through structural change [Review session (in lieu of Feb. 3)] ASSIGNMENT 1 DUE Productivity growth through learning Coordination failures and the big push
*** Presidents Day Holiday ***

Professor Pande & Rodrik Pande & Rodrik Rodrik Rodrik Rodrik Rodrik

7 8

Rodrik Rodrik Pande Pande Pande

Human capital: Health and Education Human capital: Health and Education Human capital: Health and Education ASSIGNMENT #2 DUE MIDTERM EXAM NO CLASS ***SPRING BREAK Mar 10-18*** Financial Capital Financial Capital Policy Interlude I history, designing development aid The institutional context: Families to institutions The institutional context: Governance and Development The institutional context: Governance reform The institutional context: Governance reform ASSIGNMENT #3 DUE Policy Interlude II designing domestic institutions Growth Strategies The global context: Financial globalization and crises The global context: Sustainable development ASSIGNMENT #4 DUE Policy interlude III designing regulatory institutions Policy design for the poor: wrap up ***Reading Period Begins 4/28/12-05/1/12** FINAL EXAM TIME

13 14 15 16 17 18 19 20 21 22 23 24 25

Pande Pande Pande & Rodrik Pande Pande Pande Rodrik Pande & Rodrik Rodrik Rodrik Pande Pande & Rodrik Pande & Rodrik

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://ezpprod1.hul.harvard.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=heh&A N=4850086&site=ehost-live&scope=site

* 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://wwwwds.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.ezpprod1.hul.harvard.edu/science?_ob=MImg&_imagekey=B7P5D-4YY9BJS-K1V&_cdi=24600&_user=209690&_pii=B9780444529442000124&_origin=browse&_coverDate =12%2F31%2F2010&_sk=999949999&view=c&wchp=dGLbVtzzSkWA&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.ezpprod1.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-4ae84754-8c10-

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-ad204897-a69f76c89cd50afe%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-b9f64f9f-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=3f89a605-3d5a4055-be644e4265c5cf6c%40sessionmgr4&vid=1&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXR l#db=bth&AN=34188631

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.ezpprod1.hul.harvard.edu/ehost/detail?hid=112&sid=ee55cc4b-7fef-4cfc-8838c9353c181b27%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, Indias 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

Amsden, Alice H., Asias 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=ElLMI9nSiaqsjRipe80ohiaJRE&hl=en&ei=8oonTeyWLYL_8AbflXfAQ&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.ezpprod1.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 Chinas 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.ezpprod1.hul.harvard.edu/science?_ob=MImg&_imagekey=B6VBW-458XPFR-61&_cdi=5937&_user=209690&_pii=030439329390026C&_origin=search&_zone=rslt_list_item &_coverDate=12%2F31%2F1993&_sk=999679996&wchp=dGLbVlbzSkWb&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

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.ezpprod1.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.ezpprod1.hul.harvard.edu/science?_ob=ArticleURL&_udi=B6VBV-49BY2MW1&_user=209690&_coverDate=12%2F31%2F2003&_rdoc=10&_fmt=high&_orig=browse&_or igin=browse&_zone=rslt_list_item&_srch=docinfo(%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.ezpprod1.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.ezpprod1.hul.harvard.edu/content/g27l546718002473/fulltext.pdf Cadot, Olivier, Cline Carrre, and Vanessa Strauss-Kahn, Export Diversification: Whats 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.ezpprod1.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-stiglitzfrontiersofdevec.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.ezpprod1.hul.harvard.edu/sici?sici=00223808%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/centersprograms/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.ezpprod1.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://ezpprod1.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.ezpprod1.hul.harvard.edu/ehost/detail?hid=105&sid=7301c2ba-d574-4680-8259d332c0e5c52d%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.ezpprod1.hul.harvard.edu/science?_ob=MImg&_imagekey=B6VBV-4BT1V2X-2N&_cdi=5936&_user=209690&_pii=S0304387803001858&_origin=browse&_zone=rslt_list_it em&_coverDate=06%2F30%2F2004&_sk=999259998&wchp=dGLzVlbzSkzV&md5=a1b395ebd30f6daedefa00e88f27c6be&ie=/sdarticle.pdf

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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.ezpprod1.hul.harvard.edu/science?_ob=MImg&_imagekey=B6V76-4J2KT82-1C&_cdi=5834&_user=209690&_pii=S0047272705001672&_origin=browse&_coverDate=09% 2F30%2F2006&_sk=999099991&view=c&wchp=dGLbVlWzSkWA&md5=e8f1187818b9e8276ea1e0d2c82f3dfe&ie=/sdarticle.pdf

************************* MIDTERM: MARCH 5 **************************** *** NO CLASS MARCH 7 *** *** SPRING BREAK MARCH 10-18 ***

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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.ezpprod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?vid=4&hid=7&sid=e9da28ce-ec63-42218127-5ae270891302%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.ezpprod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?vid=4&hid=11&sid=f92ff736-f151-46a19cd4-26e15e3b37c4%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), 329349. 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.ezpprod1.hul.harvard.edu/ehost/detail?hid=105&sid=4010f7b9-62a6-4a0e-ba9981688423b28c%40sessionmgr115&vid=1&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1za XRl#db=bth&AN=2730332

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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.ezpprod1.hul.harvard.edu/doi/pdfplus/10.1257/089533003769204335 Hogan, Margaret C., et al. (2010). Maternal Mortality for 181 Countries, 19802008: A Systematic Analysis of Progress towards Millennium Development Goal 5. The Lancet, vol. 375, no. 9726, pp.8-14. http://www.sciencedirect.com.ezpprod1.hul.harvard.edu/science?_ob=MiamiImageURL&_cid=271074&_user=209690&_pii=S01 40673610605181&_check=y&_origin=search&_zone=rslt_list_item&_coverDate=2010-0514&wchp=dGLbVlV-zSkzS&md5=dbcafe46c4efcf19b440bdfe4e4be72c/1-s2.0S0140673610605181-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). Authors 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/globaldevelopment/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 Arent 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

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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.ezpprod1.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 Sexspecific Earnings on Sex Imbalance, Quarterly Journal of Economics, Vol. 123 (3), pp. 12511285. http://www.mitpressjournals.org.ezpprod1.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: 463480. 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

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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.ezpprod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?hid=104&sid=62df4712-6aa6-47cd-849b69b24908870f%40sessionmgr115&vid=4 Information Matters * Finan, Frederico and Claudio Ferraz (2008). Exposing Corrupt Politicians: The Effect of Brazils Publicly Released Audits on Electoral Outcomes, Quarterly Journal of Economics, 123(2): 703-745. http://web.ebscohost.com.ezpprod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?vid=3&hid=19&sid=8a64b301-3726-4cd7b35b-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

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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.ezpprod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?vid=3&hid=110&sid=475b4a39-2d35-40489112-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.ezpprod1.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##

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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.ezpprod1.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, 165195. http://www.sciencedirect.com.ezpprod1.hul.harvard.edu/science?_ob=MImg&_imagekey=B6V64-44GMFF6-17S&_cdi=5804&_user=209690&_pii=S0014292101001969&_origin=search&_zone=rslt_list_it em&_coverDate=02%2F28%2F2003&_sk=999529998&wchp=dGLbVzzzSkWb&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-Dec2005&view=c&wchp=dGLbVlV-zSkWb&md5=8f8930ddeedb2f416205cb5477674ebf/1-s2.0S1574068405010154-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.

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* Rodrik, Dani, Goodbye Washington Consensus, Hello Washington Confusion? Journal of Economic Literature, December 2006. http://web.ebscohost.com.ezpprod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?vid=5&hid=19&sid=d48f1f7d-4051-4e50b8d2-597895b10a15%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." Economa - 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)

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* 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.ezpprod1.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.ezpprod1.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.ezpprod1.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

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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 Salvadors 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.ezpprod1.hul.harvard.edu/ehost/pdfviewer/pdfviewer?vid=3&hid=19&sid=7090a6f0-be04-44c0a022-fb601611c909%40sessionmgr14
Almond, Douglas, Yuyu Chen, Michael Greenstone and Hongbin Li (2009). Winter Heating or Clean Air? Unintended Impacts of Chinas 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

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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