Teaching code

4S003747

Teacher

Francesco Andreoli

Coordinator

Francesco Andreoli

Credits

9

Language

English

Scientific Disciplinary Sector (SSD)

SECS-P/02 - ECONOMIC POLICY

Period

primo semestre (lauree magistrali) dal Oct 4, 2021 al Dec 17, 2021.

Lessons timetable Moodle Seminars 0

Learning outcomes

Classes will cover the central topics of development economics: the determinants of economic growth, technological progress and its implications for productivity, the distributive consequences of growth and human capital accumulation, inequality, and the effect of increasing openness to trade, regional integration and global imbalances, on these dimensions. Stylized economic models will be used to understand the functioning of the relevant markets (such as the labor market and the markets of goods and commodities) and to assess the role of public intervention on them (focusing on the role of education and health policies, redistribution and trade policies). Furthermore, the course will be strongly characterized by an “evidence-based” approach: data and public reports focusing on development issues (from the World Bank, IMF, OECD, for instance) will be critically assessed upon available scientific evidence. The main goal of the classes is to develop a scientific approach to the critical analysis of data and policies for development, which can be carried forward to analyzing and critically assessing the choices of single firms operating in developed and developing countries. Students seeking positions in firms and public institutes which are active on international markets will also: i) acquire competences that are needed to value the opportunities offered by countries and markets with which Italian firms are broadly interacting; ii) master the tools needed to analyze and critically assess the financial and economic scenario characterizing countries with different degrees of development; iii) be able to evaluate risks and opportunities offered by international markets in a global context. The classes will benefit from the active participation of international lecturers and experts from international organizations.

Program

INTRODUCTION TO DEVELOPMENT ECONOMICS

1. An overview of economic development in different countries.
2. Understanding and measuring drivers of development: An introduction to causal inference methods.
3. Economic growth and economic development.
4. Beyond GDP: Human capital, education and public health.
5. Human capital, endogenous growth, history, expectation and istitutions.
6. Inequality (global and local), poverty and development.
7. Migration: the dual model of development and the labor market.
8. Urban agglomerations and the "New Economic Geography".
9. Credit market, inequality and development.
10. Development and public policy I.


INTERNATIONAL TRADE AND DEVELOPMENT
11. International trade and development: facts and myths.
12. International trade, globalization, labor market and inequality.
13. Development and public policy II: Trade policies.


ONE ADDITIONAL TOPIC
To be agreed upon during the semester depending on broadly shared interests of the class, and selected upon the following items:

1. Economic inequality and insecurity: measures for an inclusive economy:
- Ch2 of “Major Future Economic Challenges”, see report https://www.strategie.gouv.fr/english-articles/major-future-economic-challenges-olivier-blanchard-and-jean-tirole
- F. Bourguignon, T, Scott-Railton (2015), “The Globalization of Inequality”, Princeton University Press.

2. Climate change: sustainability and development:
- “World Bank. 2010. World Development Report 2010 : Development and Climate Change. Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/4387 License: CC BY 3.0 IGO.”
- Intergovernmental Panel on Climate Change (IPCC), reports https://www.ipcc.ch/2021/08/09/ar6-wg1-20210809-pr/
- Ch1 of “Major Future Economic Challenges”, see report https://www.strategie.gouv.fr/english-articles/major-future-economic-challenges-olivier-blanchard-and-jean-tirole

3. Demographic changes: migration, health and ageing:
- Ch. 2 of “Major Future Economic Challenges”, see report https://www.strategie.gouv.fr/english-articles/major-future-economic-challenges-olivier-blanchard-and-jean-tirole

4. Globalization:
- R. Fiorentini e G. Montani (2012), “The New Global Political Economy”, Edward Elgar, ISBN 978-0-85793-404-8, capitoli 2,3,4-

5. China and India:
- P. Bardhan (2010), “Awakening Giants, Feet of Clay: Assessing the Economic Rise of China and India”, Princeton University Press.


FURTHER READINGS, including scientific and policy reports and published research, will be provided during the classes. Some of the material covered in class includes evidence taken from these additional readings. Students are referred to this material as complementary readings, and for understanding and critically analyzing the extent of development of institutions governing countries and characterizing the business environment. Material will be made available on Moodle.

Bibliography

Examination Methods

The exam will be a 90 minutes written examination based on essay questions of varying difficulty and graded on a scale 31/30. Students will have the possibility to complete an assignment, also graded on a 31/30 scale based on an individual and group score, which will be taken into consideration when determining the final grade of the exam. The assignment will consists in two activities:

i) producing an essay (in groups of min 2, max 3 students) based on reading, summarizing and commenting chapters of the 2021 World Development Report and the World Economic Outlook (group score);

ii) Actively participating to the ITED blog, where threads on topics related to development are drawn from research papers, from OECD/IMF/WB publications or from specialized press (individual score).

The final grade will be determined according to the following rule: max{exam grade; 0.5*exam grade + 0.5*assignments grade}. Simulations of the final exam will be carried over during the semester. More details about grading and assignments will be provided on the first meeting.