The course compares standard macroeconomic models with models suited to analyze the economics of developing countries. Both short and long-term models will be examined and compared.
The Macroeconomics of Developing Countries, teaching notes by Giovanni Andrea Cornia
Suggested further reading:
Economics of Development By Thirwall and Pacheco-Lopez
Obiettivi Formativi
At the end of the course students are expected to be able to understand the differences among standard macroeconomic modelling and the macroeconomics of developing countries.
Metodi Didattici
Lectures
Modalità di verifica apprendimento
Written exam.
The student must answer to four questions.
Each question must be chosen by a separate group of three questions.
A midterm exam could be taken.
Programma del corso
1. Genesis, context, focus, historical evolution and main accounting relations of
standard macroeconomics: a brief overview
2. Long-term supply-side models of potential growth
3. Demand-side models of determination of income level over the short-term
4. Genesis of development macroeconomics and national accounts in DGCs.
5. Main structural differences between DDC & DGC affecting macroeconomics
6. Main institutional differences
7. Differences in main behavioral relationships between DGCs and DDCs
8. The Solow model for low-income DGCs
9. Long term growth in DGC reliant on land and natural resources
10. Resource abundance and Dutch Disease, long-term growth & inequality
11. Long term growth in predominantly agricultural economies (to be added-tba)
12. Long-term growth in DGC with a large informal sector: Loyaza model
13. Rapid population growth and long term development
14. IS-LM and AS-AD with behavioral equations typical of a standard DGC
15. Limitations of Mundell-Fleming model and of devaluation in DGCs
16. Balance of payments constrained growth models (Thirlwall model)
17. Models of macroeconomics stabilization of monetary inspiration for DGCs
18. ‘Gap models’ of growth (à la Bacha) foreign finance, (and aid effectiveness?)
19. Macroeconomics reforms of the 1980s-1990s, inequality, growth and poverty
20. A macroeconomics for growth and poverty reduction in the DGCs