Course Syllabus

ECO 6351 / POEC 6364

Economics of Development
University of Texas at Dallas
Fall 2006

Professor Contact Information

Wim Vijverberg Class hours: T 7:00-9:45, CB 1.104

GR 3.805 Office hours: W 11:00-1:00
Phone: (972)883-2042 and by appointment

Course Pre-requisites, Co-requisites, and/or Other Restrictions

There are no prerequisites, corequisites or other restrictions for enrollment in this course. Students are
advised that the course includes discussions of mathematical micro- and macroeconomic models and
econometric techniques that authors have used to estimate their empirical models to examine their
theories.

Course Description

This course provides a theoretical and empirical overview of research on national economic development,
with a focus on developing countries. Topics to be discussed (as time permits) include: macro models of
economic development, economic growth, the notion of dualism, investment through public and private
means, financial intermediation, human resource development, the functioning of labor markets,
environmental issues, sectoral policy, distribution, and planning models.

Student Learning Objectives/Outcomes

This course promotes student learning in various ways.

• A deep understanding of important development issues
• A study of economic approaches and solutions to development, both historically and currently
• Exposure to economic modeling
• Exposure to applied econometric analysis
• Enhanced presentation and writing skills

Required Textbooks and Materials

G.M. Meier and J.E. Rauch, Leading Issues in Economic Development, 8th ed., New York: Oxford
University Press, 2005

Suggested Course Materials

Course Syllabus Page 1

The following are texts that have proven useful to students of development economics in the past. The
reading list refers to some of these texts explicitly.
Perkins, Radelet, Snodgrass, Gillis, and Roemer, Economics of Development, 5th ed, New York: Norton,
2001
World Bank, World Development Report, New York: Oxford Univ Press, (various years)
C.K. Wilber, The Political Economy of Development and Underdevelopment, 2nd ed. (1978) and 4th ed.
(1988), New York: Random House
John Eatwell, Murray Milgate, and Peter Newman, eds., The New Palgrave (Econ. Dev.) New York:
Norton, 1987.
P. Dasgupta, An Inquiry into Well-Being and Destitution, Oxford: Oxford University Press, 1993.

Grading Policy, Assignments, and Exam Dates

The semester grade will be based on a midterm and a final exam, a term assignment, class participation.
The weights of these are:
Midterm exam (October 10) ................................... 35 %
Final exam (November 28, 7:00pm) ....................... 40 %
Term assignment (see below) ................................. 20 %
Participation............................................................. 5 %

Term Assignment:
The term assignment is subject to your choice from the following four alternatives:
• choose an issue, get instructor’s approval of the topic by September 12, hand in a list of possible
literature sources by October 3, and write a 12-to-15-page literature survey that covers a
minimum of 10 literature sources. The final draft is due on November 21.
• choose an issue, get instructor’s approval of the topic by September 12, hand in a list of possible
literature sources by October 3, highlight the main contributions of 5 literature sources in the
literature, extract an interesting research hypothesis, and describe how you would go about testing
this hypothesis (type of sample, type of control variables, etc.). The final draft is due on
November 23.
• (i) make a fifteen-to-twenty-minute presentation in class on one of the papers of this reading list;
and (ii) write a short evaluation on another paper of this reading list. A list of eligible papers will
soon be designated. The presentation and report are due within the ongoing schedule of the
course.
•
If the circumstances so demand, these descriptions and timelines are subject to change at the discretion
of the Professor.

Course & Instructor Policies

Absence from any exam must be properly documented; otherwise a grade of 0 is assigned to a missed
exam. Make-up exams are scheduled within the same week for those who missed an exam with proper
documentation.
There is no extra credit work.
Papers that are handed in after the due date are penalized 10% per day.

Course Syllabus Page 2

 Presentations that are missed without proper documentation receive a grade of 0. Moreover, since the
instructor will have presented the paper as scheduled, a different paper must be presented at another time.
Alternatively, the term assignment may be fulfilled through another option.
Class attendance and participation through questions and discussion are expected: a small portion of the
grade depends on it, and it greatly benefits exam performance.
Cellphones and pagers must be turned off. Recording the lecture is not permitted.

Reading Assignments

The following is a tentative list of issues that we will discuss during this semester. We will not cover all
of the readings: a good number of them are provided only for your interest. If time presses, topics 8, 11
and 12 are most likely to be skipped.
Readings from Meier are always covered; starred readings are likely to be covered; readings from Perkins
et al. are useful background material but not usually covered.

1. INTRODUCTION
Objectives of Development – Development Measures and Indicators – Quality of Data
*Meier, section I.A
Perkins et al., Ch. 1, 2, 4
*T.N. Srinivasan, AData base for development analysis: an overview,@ Journal of Development
Economics, June 1994, 44:1, pp. 3-27.
*J.R. Behrman and M.R. Rosenzweig, ACaveat emptor: cross-country data on education and the labor
force,@ Journal of Development Economics, June 1994, 44:1, pp. 147-171.
*N. Hicks and P. Streeten, “Indicators of development: the search for a basic needs yardstick.”
World Development, 1979 (7) (Also in Meier, 4th ed., pp. 26-30).
Human Development Report, 1991.
*T.N. Srinivasan, “Human development: a new paradigm or reinvention of the wheel.” American
Economic Review, May 1994, 84:2, pp. 238-243.
*Human Development Report, 1994, Ch. 5: “The Human Development Index Revisited.”
*Human Development Report, 2003, pp. 340-344.
R. Kanbur, “Economics, social science and development.” World Development, March 2002, 30:3,
477-486.
Regional Performance
*Meier, section I.B
*T.N. Srinivasan, “China and India: economic performance, competition, and cooperation: an
update.” Journal of Asian Economics, 2004, 15, 613-636.

2. GROWTH: HISTORICAL, NEOCLASSICAL, UNORTHODOX

*Meier, section I.C
Neoclassical theory of economic growth
Perkins et al., Ch. 2, 3
H.G. Jones, An Introduction to Modern Theories of Economic Growth (New York: McGraw-Hill,
1976)
C.I. Jones, Introduction to Economic Growth, 2nd ed. (New York: Norton, 2002)
P.M. Romer, AIncreasing returns and long-run growth,@ Journal of Political Economy, October 1986,
94:5, 1002-1037.
*R. Barro, AEconomic growth in a cross section of countries,@ Quarterly Journal of Economics, May
1991, 106, 407-443.
Other approaches
*Meier, section II
Course Syllabus Page 3
 Perkins et al., Ch.3
*T. Scitovski, “Balanced growth.” The New Palgrave (Econ. Dev.)
*R. Kanbur and J. McIntosh, “Dual economies.” The New Palgrave (Econ. Dev.)
*L. Taylor, “Gap models.” Journal of Development Economics, October 1994, 45:1, pp. 17-34.
Meier (sixth ed.), section II
K. Griffin, “Underdevelopment in history,” in Wilber, 2nd ed. (1979), pp. 77-90
P.A. Baran, “On the Political Economy of Backwardness,” in Wilber, 4th ed. (1988), pp. 96-108.
C.K. Wilber and K.P. Jameson, “Paradigms of Economic Development and Beyond,” in Wilber, 4th
ed., pp. 3-27
I. Wallerstein, “Periphery,” The New Palgrave (Econ. Dev.)
K. Griffin, Alternative Strategies for Economic Development (London: MacMillan, 1989)
Growth and poverty
*A. Kraay, “When is growth pro-poor? Evidence from a panel of countries.” Journal of
Development Economics, June 2006, 80:1, 198-227.

3. SAVING AND INVESTMENT THROUGH THE PUBLIC SECTOR

*R. Goode, “Tax advice to developing countries: a historical survey.” World Development, January
1993, 21:1, 37-53.
*J. Aizenman and R. Hausmann, “The impact of inflation on budgetary discipline.” Journal of
Development Economics, December 2000, 63:2, 425-449.
Investment in Infrastructure
*H. Binswanger, S. Khandker and M.R. Rosenzweig, “How infrastructure and financial institutions
affect agricultural output and investment in India.” Journal of Development Economics, August
1993, 41:2, 337-366.
World Development Report, 1994, Overview, Ch. 1, 3, 4, 6
P. Lanjouw, “Infrastructure, a ladder for the poor.” Finance and Development, March 1995, 33-35.

4. FINANCIAL INTERMEDIATION
*Meier, section V (except selections V.3 and V.4)
Financial development
M. Fry, Money, Interest, and Banking in Economic Development (Baltimore: The Johns Hopkins
University Press, 1988)
*R. Levine, AFinancial development and economic growth: views and agenda.” Journal of Economic
Literature, June 1997, 35:2, 688-726.
R. Levine, “Finance and growth: theory and evidence.” NBER working paper 10766, Sept. 2004
(www.nber.org/papers/w10766).
*R. Cull, “Financial-sector reform: what works and what doesn’t.” Economic Development and
Cultural Change, January 2001, 49:2, 269-290.
R.G. Gelos and A.M. Werner, “Financial liberalization, credit constraints, and collateral: investment
in the Mexican manufacturing sector.” Journal of Development Economics, February 2002,
67:1, 1-27.
*P.O. Demetriades and K.A. Hussein, “Does financial development cause economic growth? Time
series evidence from 16 countries.” Journal of Development Economics, December 1996, 51:2,
387-411.
*G. Bekaert, C.R. Harvey, and C. Lundblad, “Emerging equity markets and economic development.”
Journal of Development Economics, December 2001, 66:2, 465-504.
Group-based lending
*T. Besley and S. Coate, “Group lending, repayment incentives and social collateral.” Journal of
Development Economics, February 1995, 46:1, 1-18.
Special Issue on Group Lending, Journal of Development Economics, October 1999, 60:1.
*J. Morduch, “The microfinance promise.” Journal of Economic Literature, December 1999, 37:4,
1569-1614.

Course Syllabus Page 4

 *M. Pitt and S. Khandker, “The impact of group-based credit programs on poor households in
Bangladesh: does the gender of participants matter?” Journal of Political Economy, 1998,
106:5, 958-996.
Formal vs. informal credit markets
*S. Jain, “Symbiosis vs. Crowding out: the interaction of formal and informal credit markets in
developing countries.” Journal of Development Economics, August 1999, 59:2, 419-444.
P. Bose, “Formal-informal sector interaction in rural credit markets.” Journal of Development
Economics, August 1998, 56:2, 265-280.
M.R. Gupta, “Informal sector and informal capital market in a small open less-developed economy.”
Journal of Development Economic, April 1997, 52:2, 409-428.
Market linkages
S.J. Goetz, “Interlinked markets and the cash crop-food crop debate in land-abundant tropical
agriculture.” Economic Development and Cultural Change, January 1993, 41:2, pp. 343-361.
F. Caselli, “Rural labor and credit markets.” Journal of Development Economics, Dec. 1997, 54:2,
235-260.
Dasgupta, Ch. 9
Risk sharing and insurance
*R. Townsend, “Risk and insurance in village India.” Econometrica, 1994, 62:3, 539-591.
S. Dercon and P. Krishnan, “In sickness and in health: risk sharing within households in Ethiopia.”
Journal of Political Economy, 2000, 108:4, 688-726.
M.R. Rosenzweig and O. Stark, “Consumption smoothing, migration, and marriage.” Journal of
Political Economy, 1989, 97:4, 905-926.
*J. Jacoby and E. Skoufias, “Risk, financial markets, and human capital in a developing country.”
Review of Economic Studies, 1997, 64:3, 311-335.
N. Kocherlakota, “Implications of efficient risk sharing without commitment.” Review of Economic
Studies, 1996, 63, 595-609.
E. Ligon, J. Thomas and T. Worrall, “Mutual insurance and limited commitment: theory and
evidence in village economies.” Review of Economic Studies, 2002, 69, 209-244.
*M. Fafchamps and S. Lund, “Risk-sharing networks in rural Philippines.” Journal of Development
Economics, August 2003, 71:2, 261-287.
*A. Asfaw and Joachim von Braun, “Is consumption insured against illness? Evidence on
vulnerability of households to health shocks in rural Ethiopia.” Economic Development and
Cultural Change, October 2004, 53:1, 115-130.
*C. Park, “Risk pooling between households and risk-coping measures in developing countries:
evidence from rural Bangladesh.” Economic Development and Cultural Change, January 2006,
54:2, 423-457.

5. INTERNATIONAL TRADE AND TECHNOLOGY TRANSFER

*Meier, section III.A
Perkins et al., Ch. 14, 19
G. Kaminski and A. Pereira, “The debt crisis: lessons of the 1980s for the 1990s.” Journal of
Development Economics, June 1996, 50:1, 1-24.
*A. Harrison, “Openness and growth: a time-series cross-country analysis for developing countries.”
Journal of Development Economics, December 1995, 48:2, 419-447.
*H. Yanikkaya, “Trade openness and economic growth: a cross-country empirical investigation.”
Journal of Development Economics, October 2003, 72:1, 57-89
*J.A. Frenkel and D. Romer, “Does trade cause growth?” American Economic Review, June 1999,
89:3, 379-399.
H.L. Kee,A. Nicita, and M. Olarreaga, "Estimating Trade Restrictiveness Indices." CEPR
Discussion Paper No. 5576, August 2006 (Probably also available through the World Bank).
S.M. Miller and M.P. Upadhyay, “The effects of openness, trade orientation, and human capital on
total factor productivity.” Journal of Development Economics, December 2000, 63:2, 399-423.

Course Syllabus Page 5

 *H.A. Lee, L.A. Ricci, and R. Rigobon, “Once again, is openness good for growth?” Journal of
Development Economics, Dec 2004, 75:2, 451-472.
*Meier, section III.B

6. HUMAN RESOURCES
Education
*Meier, section IV.A
Perkins et al., Ch. 9
G. Psacharopoulos, “Returns to education: a further international update and implications.” Journal
of Human Resources, Fall 1985, 20, 583-604.
*G. Psacharopoulos, “Returns to education: a global update.” World Development, September 1994,
22:9, 1325-43.
*P. Bennell, “Rates of return to education: does the conventional pattern prevail in sub-Saharan
Africa?” World Development, January 1996, 24:1, 183-199.
*J. Phillips, “Farmer education and farmer efficiency: a meta analysis.” Economic Development and
Cultural Change, October 1994, 43:1, 149-165.
E.M. Godtland, E. Sadoulet, A. De Janvry, R. Murgai, and O. Ortiz, “The Impact of Farmer Field
Schools on Knowledge and Productivity: A Study of Potato Farmers in the Peruvian Andes.”
Economic Development and Cultural Change, October 2004, 53:1, 63-92.
*J. van der Sluis, Mirjam van Praag, and Wim P.M. Vijverberg, “Entrepreneurship Selection and
Performance: A Meta-analysis of the Impact of Education in Less Developed Countries,”
manuscript, September 2003.
K. Flug, A. Spilimbergo, E. Wachtenheim, “Investment in education: do economic volatility and
credit constraints matter?” Journal of Development Economics, April 1998, 55:2, 465-481.
E. Duflo, “Schooling and labor market consequences of school construction in Indonesia: evidence
from an unusual policy experiment.” American Economic Review, September 2001, 91:4, 795-
813.
A. Tansel, “Schooling attainment, parental education and gender in Côte d=Ivoire and Ghana.”
Economic Development and Cultural Change, July 1997, 45:4, 825-856.
W.L. Parish and R.J. Willis, “Daughters, education, and family budgets.” Journal of Human
Resources, Fall 1993, 28:4, 863-898.
P. Glewwe, “Schools and skills in developing countries: education policies and socioeconomic
outcomes.” Journal of Economic Literature, June 2002, 40:2, 436-482.
*M. Bills and P.J. Klenow, “Does schooling cause growth?” American Economic Review, December
2000, 90:5, 1160-1183.
*E.A. Hanushek and D.D. Kimbo, “Schooling, labor-force quality, and the growth of nations.”
American Economic Review, December 2000, 90:5, 1184-1208.
R.J. Barro, “Human capital and Growth.” American Economic Review, May 2001, 91:2, 12-17.
Health and Nutrition
*Meier, section IV.B
Perkins et al., Ch. 10
*L. Haddad, “Women's income and boy-girl anthropometric status in the Côte d'Ivoire.” World
Development, April 1994, 22:4, 543-553.
*H. Alderman and M Garcia, “Food security and health security: explaining the levels of nutritional
status in Pakistan.” Economic Development and Cultural Change, April 1994, 42:3, 485-507.
*A.V. Swamy, “A simple test of the nutrition-based efficiency wage model.” Journal of
Development Economics, June 1997, 53:1, 85-98.
World Development Report, 1993, Overview, Ch. 1-4, 7
Dasgupta, Ch. 11, 14-16
M. Ravallion, “Famines and Economics.” Journal of Economic Literature, September 1997, 35:3,
1205-1242.

Course Syllabus Page 6

 K. Beegle, “Labor effects of adult mortality in Tanzanian Households.” Economic Development and
Cultural Change, April 2005, 53:3, 655-683.
Population
*Meier, section IV.C
Perkins et al., Ch. 7
Dasgupta, Ch. 13
World Development Report, 1984, Ch. 4-9
*G.S. Becker, E.L. Glaeser, and K.M. Murphy, “Population and economic growth.” American
Economic Review, May 1999, 89:2, 145-149.
*O. Galor and D.N. Weil, “From Malthusian stagnation to modern growth.” American Economic
Review, May 1999, 89:2, 150-154.
*P. Dasgupta, AThe population problem: theory and evidence,@ Journal of Economic Literature,
December 1995, 33:4, 1879-1902.
C. Blackorby, W. Bossert, D. Donaldsen, “Foreign aid and population policy: some ethical
considerations.” Journal of Development Economics, August 1999, 59:2, 203-232.
Symposium on Poverty, Programs, and Demographic Outcomes, Economic Development and
Cultural Change, October 2005.
Women and Development
*Meier, section IV.D
*A.R. Quisumbing, L. Haddad, and C. Peña, “Are women overrepresented among the poor? An
analysis of poverty in 10 developing countries.” Journal of Development Economics, October
2001, 66:1, 225-269.
M. Baydas, R. Meyer and N. Aguilera-Alfred, “Discrimination against women in formal credit
markets: reality or rhetoric.” World Development, July 1994, 22:7, pp. 1073-1082.

7. LABOR MARKETS
Wage Determination and Unemployment in LDCs
Perkins et al., 8
*J. van der Gaag and W.P.M. Vijverberg, “A Switching Regression Model for Wage Determinants in
the Public and Private Sectors of a Developing Country.” Review of Economics and Statistics,
May 1988, 70:2, 244-252
*A.D. Foster and M.R. Rosenzweig, “Information, learning and wage rates in low-income rural
areas.” Journal of Human Resources, Fall 1993, 28:4, 759-790.
J.-M. Baland, J. Drèze, and L. Leruth, “Daily wages and piece rates in agrarian economies.” Journal
of Development Economics, August 1999, 59:2, 445-461.
J. Anderson Schaffner, “Premiums to employment in larger establishments: evidence from Peru.”
Journal of Development Economics, February 1998, 55:1, 81-113.
E. Funkhauser, “The importance of firm wage differentials in explaining hourly wage variation in the
large-scale sector of Guatemala.” Journal of Development Economics, February 1998, 55:1,
115-131
Special issue on “Labor Market Flexibility in Developing Countries.” Journal of Labor Economics,
July 1997
Dualism: Informal Labor Markets
Meier, section VI.5-IV.7
*J.R. Harris and M.P. Todaro, “Migration, unemployment and development: a two-sector model.”
American Economic Review, March 1970, 60:1, 126-142.
*D. Larson and Y. Mundlak, “On the intersectoral migration of agricultural labor.” Economic
Development and Cultural Change, January 1997, 45:2, 295-319.
F. Bourguignon and C. Morrison, “Inequality and development: the role of dualism.” Journal of
Development Economics, December 1998, 57:2, 233-257.

Course Syllabus Page 7

 D. Marcouiller, V. Ruiz de Castillo, C. Woodruff, “Formal measures of the informal wage gap in
Mexico, El Salvador and Peru.” Economic Development and Cultural Change, January 1997,
45:2, 367-392.
W. Vijverberg and J. van der Gaag, “Testing for labor market duality: the private wage sector in
Côte D'Ivoire.” Southern Economic Journal, October 1991, 58:2, pp. 406-422.
E. Funkhauser, “Mobility and labor market segmentation: the urban labor market in El Salvador.”
Economic Development and Cultural Change, October 1997, 46:1, 123-153.
G. Yamada, “Urban informal employment and self-employment in developing countries: theory and
evidence.” Economic Development and Cultural Change, January 1996, 44:2, 289-314.
*L. Peattie, “An idea and how it grew: the informal sector.” World Development, June 1987, and
comments in a later issue.
*D. Mead and C. Morrison, “The informal sector elephant.” World Development, October 1996,
24:10, 1611-1619.
C. Rakowski, “Convergence and Divergence in the Informal Sector Debate: A Focus on Latin
America, 1984-92.” World Development, April 1994, 22:4, 501-516.
W. Vijverberg, “Non-farm self-employment and the informal sector in Côte d'Ivoire: a test of
categorical identity.” Journal of Developing Areas, July 1990, 24:4, pp. 523-542.
Small Enterprises
D.C. Mead and C. Liedhold, “The dynamics of micro and small enterprises in developing countries.”
World Development, January 1988, 26:1, 61-74.
*S. Haggblade, P. Hazell, and J. Brown, “Farm-non-farm linkages in rural Sub-Saharan Africa.”
World Development, August 1989, 17:8, 1173-1201.
*J.O. Lanjouw and P. Lanjouw, “The rural non-farm sector: issues and evidence from developing
countries.” Agricultural Economics, 2001, 26:1, 1-23.
*T. Reardon, J Berdegué, and Germán Escobar, “Rural nonfarm employment and incomes in Latin
America: overview and policy implications.” World Development, March 2001, 29:3, 395-409.
W. Vijverberg, “Measuring the investment climate in rural areas.” Manuscript, The World Bank,
2003.
W. Vijverberg, “Nonfarm Household Enterprises in Vietnam.” in David Dollar, Paul Glewwe, and
Jennie Litvack, eds., Household Welfare and Vietnam=s Transition, Chapter 5 (World Bank,
Washington DC, 1998), pp. 137-178.
W. Vijverberg and J. Haughton, “Household Enterprises in Vietnam: Survival, Growth, and Living
Standards,” in Paul Glewwe, David Dollar and Nishi Agrawal, Economic Growth, Poverty, and
Household Welfare in Vietnam, Washington DC: The World Bank, 2004, 95-132.
Migration
Meier, section VI.B
O. Stark, The Migration of Labor (Cambridge, UK: Basil Blackwell, 1991)
W. Vijverberg, “Labor market performance as a determinant of migration.” Economica, May 1993,
60:238, pp. 143-160.
A. Morrison, “Capital market imperfections, labor market disequilibrium and migration: a theoretical
and empirical analysis.” Economic Inquiry, April 1994, 32, pp. 290-302.
J. Hoddinott, “A model of migration and remittances applied to western Kenya.” Oxford Economic
Papers, 1994, 46, pp. 459-476.
M.R. Gupta, “Rural-urban migration, informal sector and development policies.” Journal of
Development Economics, June 1993, 41:1, pp. 137-151.
O. Galor, and O. Stark, “The probability of return migration, migrants' work effort, and migrants'
performance.” Journal of Development Economics, 1991, 35, pp. 399-405.
O. Galor, and O. Stark, “Migrants' savings, the probability of return migration and migrants'
performance.” International Economic Review, 1990, 31, pp. 463-467.
C. Dustmann, “Return migration, uncertainty and precautionary savings.” Journal of Development
Economics, April 1997, 52:2, 295-316.

Course Syllabus Page 8

 C. Karayalcin, “Temporary and permanent migration with and without an immobile factor.” Journal
of Development Economics, April 1994, 43:2, pp. 197-215.
W. Vijverberg and L. Zeager, “Comparing earnings profiles in urban areas of an LDC: rural-to-urban
migrants vs. Native workers.” Journal of Development Economics, December 194, 45:2, 177-
199.

8. AGRICULTURE
*Meier, section VII
Perkins et al., 15
E. Boserup, “Agricultural growth and population change.” The New Palgrave (Econ. Dev.)
N. Johnson and V. Ruttan, “Why are farms so small?” World Development, May 1994, 22:5, 691-
706..
J.O. Lanjouw, AInformation and the operation of markets: tests based on a general equilibrium model
of land leasing in India.” Journal of Development Economics, December 1999, 60:2, 497-527.
M.W. Rosegrant and R.E. Evenson, “Agricultural productivity and sources of growth in South Asia.”
American Journal of Agricultural Economics, August 1992, 74:3, 757-761.
S. Fan and P.E. Pardey, “Research, productivity and output growth in Chinese agriculture.” Journal
of Development Economics, June 1997, 53:1, 115-137.
A.D. Foster and M.R. Rosenzweig, “Learning by doing and learning from others: human capital and
technical change in agriculture.” Journal of Political Economy, 1995, 103:6, 1176-1209.

9. INCOME DISTRIBUTION AND STRATEGIC GROWTH-EQUITY TRADE-OFFS

*Meier, section VIII
Perkins et al., Ch. 4
World Development Report 2000/2001
Measuring Poverty
G.S. Fields, “Data for Measuring Poverty and Inequality Changes in Developing Countries.” Journal
of Development Economics, June 1994, 44:1, pp. 87-102.
*D. Blackwood and R.G. Lynch, “The Measurement of Inequality and Poverty: A Policy Maker's
Guide to the Literature.” World Development, April 1994, 22:4, pp. 567-578.
*A.B. Atkinson and A. Brandolini, ‘Promise and pitfalls in the use of ‘secondary’ data-sets: income
inequality in OECD countries as a case study.” Journal of Economic Literature, September
2001, 39:3, 771-799.
G.S. Fields, Poverty, Inequality, and Development (Cambridge: Cambridge University Press, 1980),
Ch. 4
I. Adelman and S. Robinson, “Income distribution and development.” in H. Chenery and T.N.
Srinivasan, ed., Handbook of Development Economics, Vol. 1, (Amsterdam: North-Holland,
1988).
M. Lipton and M. Ravallion, “Poverty and Policy.” in J. Behrman and T.N. Srinivasan, ed.,
Handbook of Development Economics, Vol. 3, (Amsterdam: North-Holland, 1995).
Tests of the Kuznets hypothesis
*O. Galor and D. Tsiddon, “Income distribution and growth: the Kuznets hypothesis revisited.”
Economica, 1996 (Supplement), 63:250(S), S103-S118.
*P. Aghion and P. Bolton, “A theory of trickle-down growth and development.” Review of
Economic Studies, April 1997, 64:2, 151-172.
*S. Anand and S.M.R. Kanbur, “Inequality and development: a critique.” Journal of Development
Economics, June 1993, 41:1, 19-43.
S.K. Jha, “The Kuznets curve: a reassessment.” World Development, April 1996, 24:4, 773-780.
*S. Anand and S.M.R. Kanbur, “The Kuznets process and the inequality-development relationship.”
Journal of Development Economics, February 1993, 40:1, 25-52.
*K. Deininger and L. Squire, “New ways of looking at old issues: inequality and growth.” Journal of
Development Economics, December 1998, 57:2, 259-287..

Course Syllabus Page 9

 *P. Aghion, E. Caroli, C. García-Peñalosa, “Inequality and economic growth: the perspective of the
new growth theories.” Journal of Economic Literature, December 1999, 37:4, 1615-1660.
T.S. Eicher and C. García-Peñalosa, “Inequality and growth: the dual role of human capital in
development.” Journal of Development Economics, October 2001, 66:1, 173-197.
Policy
*P. Collier, D. Dollar, “Can the World Cut Poverty in Half? How Policy Reform and Effective Aid
Can Meet International Development Goals.” World Development, November 2001, 29:11,
1787-1802
*M. Ravallion. “Growth, Inequality and Poverty: Looking Beyond Averages.” World Development,
November 2001, 29:11, 1803-1815.
Further thoughts
*P. Glewwe and G. Hall, “Poverty, inequality and living standards during unorthodox adjustment:
the case of Peru.” Economic Development and Cultural Change, June 1994, 42:4, pp. 689-717.
*P. Glewwe and G. Hall, “Are some groups more vulnerable to macroeconomic shocks than others?
Hypothesis tests based on panel data from Peru.” Journal of Development Economics, June
1998, 56:1, 181-206.
M. Kremer and D. Chen, “Income-distribution dynamics with endogenous fertility.” American
Economic Review, May 1999, 89:2, 155-160.

10. POLITICAL ECONOMY

*Meier, Section IX.
World Development Report 1991, Overview, Ch. 2, 7
D. Osterfeld, Prosperity versus Planning: How Government Stifles Economic Growth (New York:
Oxford University Press, 1992).
*P. Bardhan, “Corruption and development: a review of issues.” Journal of Economic Literature,
September 1997, 35:3, 1320-1346.
Interaction with democracy, political stability, and culture
A.K. Fosu, “Political instability and economic growth,” Economic Development and Cultural
Change, July 1992, 40:4, pp. 829-841.
J. de Haan and C.L.J. Siermann, “Political instability, freedom, and economic growth,” Economic
Development and Cultural Change, January 1996, 44:2, 339-350.
M. Pastor Jr., and E. Hilt, “Private investment and democracy in Latin America,” World
Development, April 1993, 21:4, pp. 489-507.
B. Lian and J.R. Oneal, “Cultural diversity and economic development: a cross-national study of 98
countries, 1960-1985,” Economic Development and Cultural Change, October 1997, 46:1, 62-
77.
M.A. Nelson and R.D. Singh, “Democracy, economic freedom, fiscal policy, and growth in LDCs: a
fresh look,” Economic Development and Cultural Change, June 1998, 46:4, 677-696.
J. Fedderke and R. Klitgaard, “Economic growth and social indicators: an exploratory analysis,”
Economic Development and Cultural Change, April 1998, 46:3, 455-489.
Foreign aid
J. Svensson, “Why conditional aid does not work and what can be done about it?” Journal of
Development Economics, April 2003, 70:2, 381-402.

11. ENVIRONMENTAL CONCERNS

*Meier, Section X.
Perkins et al., 7
Dasgupta, Ch. 10
World Development Report, 1992, Overview, Ch. 1-4
D.I. Stern, M.S. Common, E.B. Barbier, “Economic growth and environmental degradation: the
environmental Kuznets curve and sustainable development.” World Development, June 1996,
24:7, 1151-1160.

Course Syllabus Page 10

 M. Byrne, “Is growth a dirty word? Pollution, abatement and endogenous growth.” Journal of
Development Economics, December 1997, 54:2, 261-284.
G. Koop, L. Tole, “Is there an environmental Kuznets curve for deforestation?” Journal of
Development Economics, February 1999, 58:1, 231-244.

12. DEVELOPMENT PLANNING AND POLICYMAKING

Planning and the Market - Economic Policy Models - Planning Process and Experiences
Meier, 6th edition, section X
Perkins et al., Ch. 5, 6
W.W. Leontief, AThe world economy of the year 2000.” Scientific American, Sept. 1980, 207-231.
The Aeconomics of transition@
W.T. Woo, S. Parker, and J.D. Sachs, eds. Economics in Transition: Comparing Asia and Europe
(Cambridge, Mass: The MIT Press, 1997).
Evaluation of the State of Development Theory
D. Lal, AThe misconceptions of 'Development Economics'.” in Wilber, 4th ed. (1988), 28-36
P.T. Bauer, Reality and Rhetoric (Harvard University Press, 1984), Ch. 1, 2, 10
Bell, C., ADevelopment economics,@ The New Palgrave (Econ. Dev.)
Symposium (P. Bardhan, A. Krueger, M. Datta-Chaudhuri, L. Westphal, A. Fishlow) Journal of
Economic Perspectives, Summer 1990, pp. 3-74

Field Trip Policies

Off-campus Instruction and Course Activities

Off-campus, out-of-state, and foreign instruction and activities are subject to state law and University policies and
procedures regarding travel and risk-related activities. Information regarding these rules and regulations may be
found at the website address http://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htm. Additional
information is available from the office of the school dean. Below is a description of any travel and/or risk-related
activity associated with this course.

There will not be any off-campus instruction or travel associated with this course.

Student Conduct & Discipline

The University of Texas System and The University of Texas at Dallas have rules and regulations for the orderly
and efficient conduct of their business. It is the responsibility of each student and each student organization to be
knowledgeable about the rules and regulations which govern student conduct and activities. General information on
student conduct and discipline is contained in the UTD publication, A to Z Guide, which is provided to all registered
students each academic year.

The University of Texas at Dallas administers student discipline within the procedures of recognized and established
due process. Procedures are defined and described in the Rules and Regulations, Board of Regents, The University
of Texas System, Part 1, Chapter VI, Section 3, and in Title V, Rules on Student Services and Activities of the
university’s Handbook of Operating Procedures. Copies of these rules and regulations are available to students in
the Office of the Dean of Students, where staff members are available to assist students in interpreting the rules and
regulations (SU 1.602, 972/883-6391).

A student at the university neither loses the rights nor escapes the responsibilities of citizenship. He or she is
expected to obey federal, state, and local laws as well as the Regents’ Rules, university regulations, and
administrative rules. Students are subject to discipline for violating the standards of conduct whether such conduct
takes place on or off campus, or whether civil or criminal penalties are also imposed for such conduct.

Course Syllabus Page 11

Academic Integrity

The faculty expects from its students a high level of responsibility and academic honesty. Because the value of an
academic degree depends upon the absolute integrity of the work done by the student for that degree, it is imperative
that a student demonstrate a high standard of individual honor in his or her scholastic work.

Scholastic dishonesty includes, but is not limited to, statements, acts or omissions related to applications for
enrollment or the award of a degree, and/or the submission as one’s own work or material that is not one’s own. As
a general rule, scholastic dishonesty involves one of the following acts: cheating, plagiarism, collusion and/or
falsifying academic records. Students suspected of academic dishonesty are subject to disciplinary proceedings.

Plagiarism, especially from the web, from portions of papers for other classes, and from any other source is
unacceptable and will be dealt with under the university’s policy on plagiarism (see general catalog for details).
This course will use the resources of turnitin.com, which searches the web for possible plagiarism and is over 90%
effective.

Email Use

The University of Texas at Dallas recognizes the value and efficiency of communication between faculty/staff and
students through electronic mail. At the same time, email raises some issues concerning security and the identity of
each individual in an email exchange. The university encourages all official student email correspondence be sent
only to a student’s U.T. Dallas email address and that faculty and staff consider email from students official only if
it originates from a UTD student account. This allows the university to maintain a high degree of confidence in the
identity of all individual corresponding and the security of the transmitted information. UTD furnishes each student
with a free email account that is to be used in all communication with university personnel. The Department of
Information Resources at U.T. Dallas provides a method for students to have their U.T. Dallas mail forwarded to
other accounts.

Withdrawal from Class

The administration of this institution has set deadlines for withdrawal of any college-level courses. These dates and
times are published in that semester's course catalog. Administration procedures must be followed. It is the student's
responsibility to handle withdrawal requirements from any class. In other words, I cannot drop or withdraw any
student. You must do the proper paperwork to ensure that you will not receive a final grade of "F" in a course if you
choose not to attend the class once you are enrolled.

Student Grievance Procedures

Procedures for student grievances are found in Title V, Rules on Student Services and Activities, of the university’s
Handbook of Operating Procedures.

In attempting to resolve any student grievance regarding grades, evaluations, or other fulfillments of academic
responsibility, it is the obligation of the student first to make a serious effort to resolve the matter with the instructor,
supervisor, administrator, or committee with whom the grievance originates (hereafter called “the respondent”).
Individual faculty members retain primary responsibility for assigning grades and evaluations. If the matter cannot
be resolved at that level, the grievance must be submitted in writing to the respondent with a copy of the
respondent’s School Dean. If the matter is not resolved by the written response provided by the respondent, the
student may submit a written appeal to the School Dean. If the grievance is not resolved by the School Dean’s
decision, the student may make a written appeal to the Dean of Graduate or Undergraduate Education, and the deal
will appoint and convene an Academic Appeals Panel. The decision of the Academic Appeals Panel is final. The
results of the academic appeals process will be distributed to all involved parties.

Copies of these rules and regulations are available to students in the Office of the Dean of Students, where staff
members are available to assist students in interpreting the rules and regulations.

Incomplete Grade Policy

Course Syllabus Page 12

As per university policy, incomplete grades will be granted only for work unavoidably missed at the semester’s end
and only if 70% of the course work has been completed. An incomplete grade must be resolved within eight (8)
weeks from the first day of the subsequent long semester. If the required work to complete the course and to remove
the incomplete grade is not submitted by the specified deadline, the incomplete grade is changed automatically to a
grade of F.

Disability Services

The goal of Disability Services is to provide students with disabilities educational opportunities equal to those of
their non-disabled peers. Disability Services is located in room 1.610 in the Student Union. Office hours are
Monday and Thursday, 8:30 a.m. to 6:30 p.m.; Tuesday and Wednesday, 8:30 a.m. to 7:30 p.m.; and Friday, 8:30
a.m. to 5:30 p.m.

The contact information for the Office of Disability Services is:

The University of Texas at Dallas, SU 22
PO Box 830688
Richardson, Texas 75083-0688
(972) 883-2098 (voice or TTY)

Essentially, the law requires that colleges and universities make those reasonable adjustments necessary to eliminate
discrimination on the basis of disability. For example, it may be necessary to remove classroom prohibitions against
tape recorders or animals (in the case of dog guides) for students who are blind. Occasionally an assignment
requirement may be substituted (for example, a research paper versus an oral presentation for a student who is
hearing impaired). Classes enrolled students with mobility impairments may have to be rescheduled in accessible
facilities. The college or university may need to provide special services such as registration, note-taking, or
mobility assistance.

It is the student’s responsibility to notify his or her professors of the need for such an accommodation. Disability
Services provides students with letters to present to faculty members to verify that the student has a disability and
needs accommodations. Individuals requiring special accommodation should contact the professor after class or
during office hours.

Religious Holy Days

The University of Texas at Dallas will excuse a student from class or other required activities for the travel to and
observance of a religious holy day for a religion whose places of worship are exempt from property tax under
Section 11.20, Tax Code, Texas Code Annotated.

The student is encouraged to notify the instructor or activity sponsor as soon as possible regarding the absence,
preferably in advance of the assignment. The student, so excused, will be allowed to take the exam or complete the
assignment within a reasonable time after the absence: a period equal to the length of the absence, up to a maximum
of one week. A student who notifies the instructor and completes any missed exam or assignment may not be
penalized for the absence. A student who fails to complete the exam or assignment within the prescribed period may
receive a failing grade for that exam or assignment.

If a student or an instructor disagrees about the nature of the absence [i.e., for the purpose of observing a religious
holy day] or if there is similar disagreement about whether the student has been given a reasonable time to complete
any missed assignments or examinations, either the student or the instructor may request a ruling from the chief
executive officer of the institution, or his or her designee. The chief executive officer or designee must take into
account the legislative intent of TEC 51.911(b), and the student and instructor will abide by the decision of the chief
executive officer or designee.

Course Syllabus Page 13