Development Economics: Macroeconomics

Calendar

LEC #	TOPICS
1	Introduction to the course
General Equilibrium Modeling with Financial Frictions, With and Without Underlying Tests
2	Micro-founded macro models Part 1: Occupational choice and limited commitment—theory with micro tests Part 2: Risk-sharing, insurance, and endogenous financial deepening Part 3: Model comparisons
3	Growth, inequality, TFP with financial imperfections (featuring limited commitment)
4	Growth, TFP, international capital flows: Other frictions in financial intermediation (costly state verification, adverse selection, moral hazard)
Micro Data and Tests of Model Underpinnings
5	Measurement: Financial accounts, economic accounts, NIPA, balance of payments; From households to village economies to national level flow of funds
6	Insurance: From village insurance to financial access and targeting to risk instruments in advanced OECD countries
7	Capital asset pricing: Idiosyncratic and aggregate risk, mean variance frontiers, lack of insurance among the poor and modern corporations
8	Links to the macro literature: Panel data and models of smoothing (exogenous incomplete markets)
9	Labor supply: Intensive and extensive margin in villages to families, lotteries, and elasticities in macro
10	Barriers to sharing risk (moral hazard, limited commitment): Common methods in village economies
Welfare and the Evaluation of Impact: Reduced Form Econometrics and Structural Parameters
11	Program evaluation: The Thai Million Baht Village Fund
12	From reduced-form to structural evaluation: Expanding financial infrastructure and impact
13	Discussion, research proposals