Microeconomics of Development

A microeconomic model of a developing economy to understand land, credit, and labour. 

In this course, we will build a microeconomic model of the developing economy based on the work of Joseph Stiglitz, Debraj Ray, and Pranab Bardhan, among others. The key features of this model are incomplete information and contracts, and lack of clear property rights that result in market failures. 

We will use the model to explain the behaviour of land, credit, insurance, and labour markets. We will explore markets for goods such as education and health. The course will introduce you to debates over measurements of poverty and inequality. You will use data from sources such as the National Sample Survey, India Human Development Survey, National Family and Health Survey, World Development Indicators and ILOSTAT to make their own estimates of poverty rates, inequality, unemployment, educational and health outcomes. 

Finally, the course will use recent papers to demonstrate the use of RCTs and other tools used in development microeconomics.