ECON 521
Incentives and Development Policy Spring 2015
Division II
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Why isn’t the whole world developed? This course (and instructor) is of the opinion that the difficulty of getting incentives right is the key source of inefficiency. The course therefore studies how limited enforcement and asymmetric information constrain development, and about innovative development designs that attempt to overcome these constraints. The course readings will be a mix of field studies, empirical evidence and theoretical tools from game theory. Incentive and corruption problems in health, education, the regulation of banks and natural monopolies, privatization, budgeting, debt forgiveness, foreign aid, microfinance, climate treaties and ethnic violence will be studied using a unified framework.
The Class: Format: seminar
Limit: 19
Expected: 19
Class#: 3513
Grading: no pass/fail option, no fifth course option
Requirements/Evaluation: two hour-long tests and a final policy project
Extra Info: may not be taken on a pass/fail basis; not available for the Gaudino option
Prerequisites: undergraduate enrollment limited and requires instructor's permission
Enrollment Preferences: This course is intended for CDE Fellows
Distributions: Division II

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