This course provides an overview of the field of economic growth, development, and income inequality. Based on existing growth patterns, we begin the lecture with questions that shed light on the reasons why countries have developed so differently where some have experienced rapid increases in their standard of living while others did not. To provide deeper insights, we study the determinants of economic growth, including factor accumulation and technological progress. We also explore the extent to which political and social institutions influence the process of economic development. A central feature of our discussion will be the role policy plays in affecting economic success or failure across countries. A second focus of this course lies on within-country income inequality as an important aspect of both economic success and political stability. We begin with theoretical models that describe the mechanisms of inequality in general. Then, we contrast the predictions of the models with international data evaluating the extent to which the development of the past can be explained by existing theories.
This course is for 1st year MIA and MPP students only.