The course aims to enable students to understand and critically analyse the essential aspects of economic development and the current phase of globalization both in its real and monetary aspects, that is related to trade and trade policies and to the role of exchange rates and the liberalization of foreign exchange respectively. In this context, the course focuses on the emergence and the role of international institutions in the regulation of economic relationship between countries. The first part of the course analyses the effects of globalization on economic development, with particular reference to inequality, institutional dynamics and conflicts
Students should be familiar with standard intermediate textbook of Macroeconomics and Microeconomics
Frontal lectures, homework
Globalization and Economic Development
Module I - Simone D'Alessandro (3CFU)
All the required readings are available at the elearning of the course
https://elearning.ec.unipi.it/course/view.php?id=1008. For any topic there is a list
of required and suggested readings. I suggest to read carefully the slides to select the most
relevant issues (also available on the curse webside).
Topic 1 - Uneven Growth
-Ray D. (2010), Uneven Growth: A Framework for Research in Development Economics", Journal of Economic Perspectives 24, No. 3 (Summer 2010), 45-60
-Ray, D. (1998), Development Economics, Princeton University Press, Chapter 2 [update
available on the elearning]
-Lewis Model, from Basu (1997) Analytical Development Economics" Ch. 7
-Slides of Topic 1
-T. Piketty (2013), Capital in the Twenty-First Century, Cambridge, MA: Harvard University Press [not available on the elearning]
-Pritchett, L. (1997), "Divergence, Big Time," Journal of Economic Perspectives 11, 3-17
-coreecon: \Economics for a changing world" Unit 1
-coreecon: \Economics for a changing world" Unit 2
Topic 2 - Economic Inequality
- Slides Topic 2
Issue 2.1. Introduction to economic inequality
coreecon: Economics for a changing world" Unit 19 (ALL, but paragraph 19.8)
Issue 2.2. Modeling economic inequality and its persistence
- Occupational Choices the credit constraints: Ray D. \Economic Development" pp. 229-236.
- Basu Analitical Development Economics" 3.4 (you could also look at the original paper Income Distribution and Macroeconomics" Galor and Zeira (1993).
Issue 2.3. Gender inequality
- Duflo, Esther. \Women empowerment and economic development." Journal of Economic Literature 50(4) (2012): 1051-1079.
- Overview of the WDR (2012) \GENDER EQUALITY and DEVELOPMENT"
Issue 2.4. Inequality and redistribution
- Bowles, Samuel (2012). The New Economics of Inequality and Redistribution, Cambridge University Press, Ch. 1.
Issue 2.4. Inequality and conflicts
- Miguel, E., Satyanath, S. and E. Sergenti (2004), "Economic Shocks and Civil Conflict: An Instrumental Variables Approach," Journal of Political Economy 112, 725-753.
- Esteban, J., Mayoral, L. and D. Ray (2012), "Ethnicity and Conflict: Theory and Facts," Science 336, 858 - 865.
Topic 3 - Incentives and the Moral Economy
- Slides Topic 3. Social Preferences and Economic Incentives
- Bowles, Samuel. The Moral Economy: Why Good Incentives Are No Substitute for Good Citizens. Yale University Press, 2016:
- Chapter 1 ALL
- Chapter 3 ALL, but pp. 69-75 (The lab and the Street)
- Chapter 4 ALL, but pp. 97-103 (Control: Incentives Compromise Autonomy)
- Chapter 7 ALL.
- Appendix 1.
I will suggest to have a look also to the other chapters (In the lecture we discuss only few issues).
The slides are very closely related to the text, look at them.
- Gneezy, U. and A. Rustichini. \A ne is a price". The Journal of Legal Studies 29.1 (2000): 1-17.
- Bowles, S., and S. Polania-Reyes. \Economic incentives and social preferences: substitutes or complements?". Journal of Economic Literature 50.2 (2012): 368-425.
- Irlenbusch, Bernd, and Gabriele K. Ruchala. \Relative rewards within team-based
compensation". Labour economics 15.2 (2008): 141-167. (Moodle)
- Niza, Claudia, Burcu Tung, and Theresa M. Marteau. \Incentivizing blood donation: Systematic review and meta-analysis to test Titmuss' hypotheses.". Health Psychology 32.9 (2013): 941-949.
- Lindbeck, A., S. Nyberg, and J. W.Weibull. \Social norms and economic incentives in the welfare state". The Quarterly Journal of Economics 114.1 (1999): 1-35.
- Charness, Gary, and Matthew Rabin. \Understanding social preferences with simple tests". The Quarterly Journal of Economics 117.3 (2002): 817-869.
Topic 4 - Green Growth, Sustainability and Inequality
- Hallegatte, S., Heal, G., Fay, M., & Treguer, D. (2012). \From growth to green growth - a framework", National Bureau of Economic Research no. 17841.
- Antal, M. and J.C.J.M. Van Den Bergh (2014). \Green growth and climate change: conceptual and empirical considerations", Climate Policy, 16:2, 165-177.
- Slides of Topic 4
- Maler, K. G., Xepapadeas, A., & De Zeeuw, A. (2004). \The economics of shallow lakes". In The Economics of Non-Convex Ecosystems (pp. 105-126). Springer Netherlands.
- Page, S. E. (2005). \Are we collapsing? A review of Jared Diamonds Collapse: How societies choose to fail or succeed". Journal of Economic Literature, 43(4), 1049-1062.
- Beddoe, R. et al. (2009). \Overcoming systemic roadblocks to sustainability: The evolutionary redesign of worldviews, institutions, and technologies". Proceedings of the National Academy of Sciences 106.8, 2483-2489.
Module II - Pompeo Della Posta (3CFU)
The course aims to enable students to understand and analyse critically the essential aspects
of the current phase of globalisation both in its real and monetary aspects, that is related to
trade, labour and nancial markets.
1. Denitions of economic globalization and wide and narrow meaning of the term
History of economic globalization: the Victorian age, the American age, the neo-liberal
age (and a new post-crisis neo-protectionist age?).
2. The real side of economic globalization
The globalization of goods markets: theoretical reasons (absolute and comparative ad-
vantages, limits of labor value theory, the recasting of trade theory within the marginalist
approach and the role of factor endowments and factor intensity of production). Critical
aspects in the globalization of the goods markets and protectionism. Globalization of
labor markets: theory and critical aspects.
3. Economic globalization on the monetary side
Balance of payments, exchange rate markets and the globalization of nancial markets:
theory and critical aspects.
Pompeo Della Posta, The Economics of Globalization: an Introduction, ETS, 2018.
See the syllabus
Given the emergency due to the COVID-19, the Midterm Exam is substituted with a coursework in the form of an essay with a possible discussion in a call with the teacher. See more information in the Class web page.
Online Teaching during the schedule of the course