Dr D Weinhold, V409 and Mr Juan Pablo Rud, V408

This course is for students taking MSc Development Studies; MSc Development Management; MSc Anthropology and Development; MSc Environment and Development; MPA Public and Economic Policy/MPA Public Policy and Management; MSc Political Economy of Late Development or from other departments who have had undergraduate second level courses in intermediate macro and microeconomics to a level assessed as adequate by the Teachers responsible. Other suitably qualified and interested graduate students may take this course as permitted by the regulations for their degrees and with the permission of the teachers responsible. The instructors reserve the right to limit enrolment in this course. At the instructors’ discretion, enrolment may be denied to any student on the basis of a pre-quiz administered in the first lecture.

This course focuses on analytically and empirically rigorous analyses of economic policies in developing countries.  We review current theoretical debates and consider how the use of empirical evidence can help to inform our analyses.  In particular, increasing data availability has meant that the effectiveness of development policies, in terms of improving welfare, reducing poverty and promoting growth, can now be analysed using a variety of quantitative techniques. By looking at how these approaches can be applied to a range of development issues, the course will provide an overview of new thinking on the design of public policy in developing countries.  While a strong mathematical or statistical background is not necessary to follow the course, students will be expected to actively learn and engage with  regression analysis and other econometric techniques.

The course consists of one lecture on the interpretation of empirical regression analysis and the role of quantitative methods in policy evaluation, approximately nine lectures focusing on policies related to macroeconomic issues, and about nine lectures on policies relating to microeconomic issues. Topics themselves may vary from year to year but in the past macroeconomic topics discussed have included determinants of growth; human capital accumulation; globalisation and the political economy of trade policy; structural adjustment; transition; economic geography of development; aid; debt relief; corruption; and environment and growth. Microeconomic topics have included health and education; targeting and transfers; land contracts and reform; intra-household resource allocation; labour markets and child labour; credit rationing and micro-finance; risk and insurance; agricultural innovation and marketing and an examination of emerging issues in political economy. Seminars consist of student-led participatory in-depth analyses of best-practice quantitative empirical research papers which students assess and critique.

The course will be taught during MT and LT and will consist of 20 two-hour lectures (lasting approx 90 min each) and 20 seminars/classes of one-and-a-half hours each.

The bulk of the course will be taught using journal articles. A reading list will be handed out by the lecturers at the beginning of their sessions. Useful reference texts include D Ray, Development Economics (1998) which will serve as the course text, W Easterly, The Quest for Growth; A Deaton, Analysis of Household Surveys: a Microeconomic Approach to Development Policy (1997); J Behrman & T N Srinivasan, Handbook of Development Economics (1995).

Students will be assessed both by continuing evaluation (30%) and by a three-hour written examination to be held in the ST (70%).