14.772 | Spring 2013 | Graduate

Development Economics: Macroeconomics


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

Course Info

As Taught In
Spring 2013
Learning Resource Types
Lecture Videos
Problem Sets with Solutions
Lecture Notes