Development Economics I Fall 2014 Economics 2390 Monday and Wednesday 1:00-2:30pm Class Location: Emerson 106 Version: September 5, 2014

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1 Development Economics I Fall 2014 Economics 2390 Monday and Wednesday 1:00-2:30pm Class Location: Emerson 106 Version: September 5, 2014 Michael Kremer Shawn Cole Nathan Nunn Teaching Assistant: M-20, Littauer Center Department of Economics mkremer@fas.harvard.edu Office Hours: Wednesdays 3:00-4:00 Jeanne Winner jwinner@fas.harvard.edu for appointment 271 Baker Library, HBS scole@hbs.edu Office Hours: By appointment (please Brian O Connor: boconnor@hbs.edu) M-25, Littauer Center Department of Economics nnunn@fas.harvard.edu Office Hours: By appointment (please Prof. Nunn) Sara Lowes slowes@fas.harvard.edu Office hours: TBD Prerequisites: This class contributes to the fulfillment of requirements for the Development field for Economics Ph.D. students. Non-Ph.D. students are not permitted to enroll in the course. Ph.D. students are required to have taken or be concurrently taking PhD level microeconomics and econometrics. The class will be team taught by Michael Kremer, Shawn Cole, and Nathan Nunn. There will be a guest lecture by Gautam Rao. 1

2 Broad Overview: Part I (taught by Michael Kremer) will cover microeconomic topics including human capital, household economics, technology adoption and reputation. This part will also cover common empirical strategies in development research and methods for causal inference. Part II (taught by Shawn Cole) is intended to bring students to the forefront of research on finance in emerging markets. Topics will include the relationship between financial development and economic growth, consumer finance; small and medium enterprise finance; debt and equity markets; the role of management and corporate governance; and the political economy of finance. Part III of the course (taught by Nathan Nunn) will cover a broad range of topics including the role of population, culture, ethnicity, leaders, and corruption in economic development. The last three lectures will examine the efficacy of industrial policy and foreign aid in helping to spur economic growth. Requirements: Final Exam: There is a final exam for the course that will take place in class on December 3, The exam is 90 minutes long and will cover material from the full semester. All material from the readings or covered in class may be on the exam. Assignments Part I: Students will be assigned two problem sets due September 22 and October 6. Part II: Students will be assigned one problem set, which includes an empirical replication, and be asked to write a referee report about one paper from a set of four. The problem set will be due on October 22, and the referee report will be due on October 29. Part III: Prior to the beginning of each class (i.e., every Monday and Wednesday), students are required to write a short summary of one of the required readings for that day and to the summary to Nathan Nunn and Sara Lowes: nnunn@fas.harvard.edu and slowes@fas.harvard.edu. The summaries are due at least 2 hours before the start of class. The summary should cover the following: (i) Why is the paper important (or why not)? (ii) An overview of the core contributions of the paper. (iii) What you liked or did not like about the paper. (iv) How the paper is connected to the other readings that day. Students are also required to complete one GIS assignment, which will facilitate an introduction to ArcMap software and help students learns its most useful functions and capabilities. The data needed for the assignment will be provided. The assignment will be due on November 24th. Grading: 2

3 In assessing grades, the following breakdown will be used: Class Participation 20%, Assignments 40 %, Final Exam 40%. Schedule: DATE TOPIC ASSIGNMENT Michael Kremer September 3 Human Capital + Experimental Methods September 8 Human Capital + Non Experimental Methods September 10 Human Capital + Non Experimental Methods September 15 Household Economics September 17 Technology September 22 Technology Problem set due September 24 Gautam Rao guest lecture September 29 Reputation October 1 Returns to Capital and Misallocation October 6 Returns to Capital and Misallocation Problem set due Shawn Cole October 8 Financial Development and Growth October 15 Household Finance/Insurance October 17 Small Business Finance October 22 Firms I: Debt Problem set due October 27 Firms II: Equity, Management, and Boards October 29 Political Economy and Finance Referee report due Nathan Nunn November 3 Macro Theories of Economic Development November 5 Overpopulation and Scale Effects November 10 Corruption and Leaders November 12 Ethnicity November 17 Culture November 19 Trade and Industrial Policy November 24 External Influence and International Relations GIS assignment due December 1 Foreign Aid December 3 Final Exam 3

4 Other Useful Information: Development Sequence: Ec 2390 is one of three development courses in the economics development sequence. The other two courses in the sequence are: (i) Ec 2325, Comparative Historical Economic Development, taught by James Robinson and Nathan Nunn in fall 2014, and (ii) Ec 2392, The Political Economy of Economic Development, taught by Melissa Dell in spring Development Seminar: It meets on Tuesdays, 2:30-4:00pm in Harvard Hall, Room TBD. You can subscribe at: Harvard Development Tea: It meets on Mondays from 3:00-4:00pm in Littauer 219. To sign up for the mailing list, please Gia Petrakis. The webpage is located here: Harvard Development Lunch: Meets on Thursdays from 12:00-1:00pm on the 4 th floor of Rubenstein Building at Harvard Kennedy School, in the Perkins Room. To sign up for the mailing list, please Sara Lowes. 4

5 I. Michael Kremer General References Banerjee, Abhijit and Esther Duflo. Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty. Public Affairs, Deaton, Angus. The Analysis of Household Surveys: A Microeconometric Approach to Development Policy. World Bank Publications, Glennerster, Rachel. Running Randomized Evaluations: A Practical Guide. Princeton University Press, Ray, Debraj. Development Economics. Princeton University Press, Human Capital + Experimental Methods * Miguel, Edward and Michael Kremer (2004). Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities", Econometrica, 72 (1), pp * Baird, Sarah, Joan Hamory Hicks, Michael Kremer and Edward Miguel (2011). Worms at Work: Long- run Impacts of Child Health Gains, mimeo. Acemoglu, D. and S. Johnson (2007), Disease and Development: The Effect of Life Expectancy on Economic Growth, Journal of Political Economy, vol. 115, no. 6, pp Almond, Douglas (2006), Is the 1918 Influenza Pandemic Over? Long-term Effects of In Utero Influenza Exposure in the Post-1940 U.S. Population, Journal of Political Economy, 114(4), pp Basinga, Paulin, Paul Gertler, Agnes Binagwaho, Agnes Soucat, Jennifer Sturdy and Christel Vermeersch (2010). Paying Primary Health Care Centers for Performance in Rwanda, World Bank Policy Research Working Paper No Björkman, Martina and Jakob Svensson (2009). Power to the People: Evidence from a Randomized Field Experiment of Community-Based Monitoring in Uganda, Quarterly Journal of Economics, 124(2), pp Bleakley, Hoyt (2010). Malaria Eradication in The Americas: A Retrospective Analysis of Childhood exposure, American Economic Journal: Applied Economics, 2(2), pp Bleakley, Hoyt (2007). Disease and Development: Evidence from Hookworm Eradication in the American South, Quarterly Journal of Economics, 122(1), pp

6 Bloom, Erik, Elizabeth King, Indu Bhushan, Michael Kremer, David Clingingsmith, Benjamin Loevinsohn, Rathavuth Hong, J. Brad Schwartz (2006). Contracting for Health: Evidence from Cambodia, working paper, Brookings Institution. Bobonis, Gustavo, Edward Miguel and Charu Puri Sharma (2006). Anemia and School Participation, Journal of Human Resources, 41(4), pp Case, Anne, Darren Lubotsky, and Christina Paxson (2002), Economic Status and Health in Childhood: The Origins of the Gradient, American Economic Review, 92 (5), pp Das, Jishnu and Jeffrey Hammer (2007). Money for Nothing: The Dire Straits of Medical Practice in Delhi, India, Journal of Development Economics, 83(1), pp Duflo Esther, Pascaline Dupas and Michael Kremer (2011). Peer Effects, Teacher Incentives, and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya, American Economic Review, 101(5), pp Field, Erica, Omar Robles and Maximo Torero (2009). Iodine Deficiency and Schooling Attainment in Tanzania, American Economic Journal: Applied Economics, 1(4),pp Galiani, Sebastián, Paul Gertler and Ernesto Schargrodsky (2005). Water for Life: The Impact of the Privatization of Water Services on Child Mortality, Journal of Political Economy, 113(1), pp Gallup, J. L. and J. D. Sachs (2001), The Economic Burden of Malaria, American Journal of Tropical Medicine and Hygiene, 64 (1, Supplement), Kremer, Michael (2003). Randomized Evaluations of Educational Programs in Developing Countries: Some Lessons," American Economic Review 93(2), pp Kremer, Michael and Alaka Holla (2009). Improving Education in the Developing World: What Have We Learned From Randomized Evaluations? in Arrow, K. and T. Bresnahan (eds.), Annual Review of Economics, Volume One, pp Kremer, Michael and Rachel Glennerster (2011). Improving Health in Developing Countries: Evidence from Randomized Evaluations, Working Paper, Harvard University. Human Capital + Non Experimental Methods * Duflo, Esther (2001). Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment, American Economic Review, 91(4), pp * Angrist, Joshua and Victor Lavy (1999). Using Maimonides' Rule to Estimate the Effect of Class Size on Scholastic Achievement, Quarterly Journal of Economics, 114 (2), pp

7 * Kremer, Michael, Jessica Leino, Edward Miguel and Alix Peterson Zwane (2011). Spring Cleaning: A Randomized Evaluation of Source Water Quality Improvement, Quarterly Journal of Economics, 126(1), pp Acemoglu, D. and S. Johnson (2007), Disease and Development: The Effect of Life Expectancy on Economic Growth, Journal of Political Economy, vol. 115, no. 6, pp Ashraf Nava, James Berry and Jesse Shapiro (2009). Can Higher Prices Stimulate Product Use? Evidence from a Field Experiment in Zambia, American Economic Review, 100(5), pp Banerjee, Abhijit, Esther Duflo, Rachel Glennerster and Dhruva Kothari (2008). Improving Immunization Coverage in Rural India: A Clustered Randomized Controlled Evaluation of Immunization Campaigns with and without Incentives, mimeo, MIT. Banerjee, Abhijit, Angus Deaton, and Esther Duflo (2004). Health, Health Care, and Economic Development, American Economic Review, 94(2), pp Bils, Mark and Peter Klenow (2000) Does Schooling Cause Growth? American Economic Review, 90(5), pp Card, David (2001). Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems, Econometrica, 69(5), pp Cohen, Jessica and Pascaline Dupas (2010). Free Distribution or Cost-Sharing: Evidence from Randomized Malaria Prevention Experiment, Quarterly Journal of Economics, 125(1), pp Cohen, Jessica, Pascaline Dupas and Simone Schaner (2011). Prices, Diagnostic Tests and the Demand for Malaria Treatment: evidence from a Randomized Trial, mimeo. Deaton, Angus and Jean Dreze (2009) Food and Nutrition in India: Facts and Interpretation, Economic and Political Weekly, 44(7), pp Duflo, Esther (2004). The Medium Run Effects of Educational Expansion: Evidence from a Large School Construction Program in Indonesia, Journal of Development Economics, 74(1), pp Dupas, Pascaline (2011). Do Teenagers Respond to HIV Risk Information? Evidence from a Field Experiment in Kenya, American Economic Journal: Applied Economics, 3(1), pp

8 Griliches, Zvi (1977). Estimating the Returns to Schooling, Econometrica, 45(1), pp Hanushek, Eric and Ludger Woessmann (2008). The Role of Cognitive Skills in Economic Development, Journal of Economics Literature, 46(3), pp Jensen, Robert (2010), The (Perceived) Returns to Education and the Demand for Schooling, Quarterly Journal of Economics, 125(2), pp Jensen, Robert and Nolan Miller (2010). Do Consumer Price Subsidies Really Improve Nutrition? NBER Working Paper No Klenow, Pete and Andrés Rodriguez-Clare (1997). The Neoclassical Revival in Growth Economics: Has it Gone too Far? NBER Macroeconomics Annual, pp Kremer, Michael and Alaka Holla (2009). Pricing and Access: Evidence from Randomized Evaluations in Education and Health, in Easterly, W. and J. Cohen (eds.), What Works in Development: Thinking Big and Thinking Small. Kremer, Michael and Edward Miguel (2007). The Illusion of Sustainability, Quarterly Journal of Economics, 122(3). Kremer, Michael, Edward Miguel and Rebecca Thornton (2009). "Incentives to Learn, Review of Economics and Statistics 91:3: Krueger, Alan and Mikael Lindahl (2001). Education for Growth: Why and for Whom, Journal of Economic Literature, 39(4), pp Munshi, Kaivan and Mark Rosenzweig (2006). Traditional Institutions Meet the Modern World: Caste, Gender, and Schooling Choice in a Globalizing Economy, American Economic Review, 96(4), pp Nguyen, Trang (2008). Information, Role Models and Perceived Returns to Education: Experimental Evidence from Madagascar, mimeo, MIT. Pritchett, Lant (2001). Where Has All The Education Gone? World Bank Economic Review, 15(3), pp Psacharopoulos, George and Harry Anthony Patrinos (2004). Returns to Investment in Education: A Further Update, Education Economics, 12(2), pp Schultz, T. Paul (2004). School subsidies for the poor: evaluating the Mexican Progresa poverty program, Journal of Development Economics, 74(1), pp Subramanian, Shankar and Angus Deaton (1996). The Demand for Food and Calories, Journal of Political Economy, 104(1), pp

9 Tarozzi, Alessandro, Aprajit Mahajan, Brian Blackburn, Dan Kopf, Lakshmi Krishnan and Joanne Yoong (2011), Micro-loans, Insectiside-Treated Bednets and Malaria: Evidence from a Randomized Controlled Trial in Orissa (India), mimeo. Household Economics * Udry, Christopher (1996). Gender, Agricultural Production, and the Theory of the Household, Journal of Political Economy, 104 (5), pp Ashraf, Nava, Erica Field and Jean Lee(2010). Household Barganing and Excess Fertility: An Experimental Study in Zambia. Ashraf, Nava (2009). Spousal Control and Intra-household Decision Making: An Experimental Study in the Philippines, American Economic Review, 99(4), pp Banerjee, Abhijit (2004). Educational Policy and the Economics of the Family, Journal of Development Economics, 74 (1), pp Becker, Gary (1981). A Treatise on the Family, Harvard University Press. Benjamin, Dwayne (1992). Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models, Econometrica, 60(2), Bertrand, M., S. Mullainathan and D. Miller (2003). Public policy and extended families: Evidence from pensions in South Africa, World Bank Economic Review, 17(1), pp Boboni, Gustavo (2009). Is the Allocation of Resources within the Household Efficient? New Evidence from a Randomized Experiment, Journal of Political Economy, 117(3), pp Browning, Martin and Pierre-Andre Chiappori (1998). Efficient Intra-household Allocations: A General Characterization and Empirical Tests, Econometrica, 66(6), pp Case, A. and A. Deaton (1998). Large cash transfers to the elderly in South Africa, Economic Journal, 108, pp Chiappori, Pierre-André, Bernard Fortin and Guy Lacroix (2002). Marriage Market, Divorce Legislation, and Household Labor Supply, Journal of Political Economy, 110(1), pp Duflo, Esther (2003). Grandmothers and Granddaughters: Old Age Pension and Intrahousehold Allocation in South Africa, World Bank Economic Review, 17(1), pp Duflo, Esther and Christopher Udry (2001). Intrahousehold Resource Allocation in Côte d'ivoire: Social Norms, Separate Accounts and Consumption Choices, NBER Working Paper No

10 Garg, Ashish and Jonathan Morduch (1998), Sibling Rivalry and the Gender Gap: Evidence from Child Health Outcomes in Ghana, Journal of Population Economics, 11 (4), pp Jensen, Robert (2004). Do private transfers displace the benefits of public transfers? Evidence from South Africa? Journal of Public Economics, 88(1), pp Lundberg, Shelly, Robert Pollak, and Terence Wales (1996). Do Husbands and Wives Pool their Resources? Evidence from the United Kingdom Child Benefit, Journal of Human Resources, 32(4), pp Lundberg, Shelly and Robert Pollak (1996). Bargaining and Distribution in Marriage, Journal of Economic Perspectives, 10(4), pp Qian, Nancy (2008). Missing Women and the Price of Tea in China: The Effect of Sex-Specific Income on Sex Imbalance, Quarterly Journal of Economics, 123(3), pp Rose, Elaina (2000). Gender Bias, Credit Constraints and Time Allocation in Rural India, Economic Journal, 110(465), pp Strauss, John and Duncan Thomas (1995). Human Resources: Empirical Modeling of Household and Family Decisions, in Behrman, Jere and T.N. Srinivasan (eds.), Handbook of Development Economics, Volume 3, pp Thomas, Duncan (1994). Like Father, Like Son: Like Mother, Like Daughter: Parental Resources and Child Height, Journal of Human Resources, 24(4), pp September 17 Technology * Banerjee, A. A Simple Model of Herd Behavior, Quarterly Journal of Economics, 107(3), pp , * Foster, Andrew and Mark Rosenzweig (1995): Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture, Journal of Political Economy, Vol. 103(6), pp Banerjee, Abhijit, Esther Duflo and Matthew O. Jackson (2012) "The Diffusion of Microfinance" Working Paper Basu, Susanto and David N. Weil (1998): Appropriate Technology and Growth, Quarterly Journal of Economics, Vol. 113(4), pp Comin, Diego A. and Bart Hobijn (2010): An Exploration of Technology Diffusion, American Economic Review, Vol. 100(5), pp

11 Ellison, G. and D. Fudenberg (1993): Rules of Thumb for Social Learning, Journal of Political Economy, Vol. 101(4), pp Rabin, Matthew and Eric Eyster (2010): Rational and Naive Herding, American Economic Journal: Microeconomics 2, Suri, Tavneet (2011): Selection and Comparative Advantage in Technology Adoption, Econometrica, Vol. 79(1), pp Reputation * Tirole, Jean (1996): A Theory of Collective Reputations (With Applications to the Persistence of Corruption and to Firm Quality), Review of Economic Studies, Vol. 63 (1), pp Akerlof, George and Rachel E. Kranton (2000): Economics and Identity, Quarterly Journal of Economics (2000), Vol. 115(3), pp Banerjee, Abhijit and Esther Duflo (2000): Reputation Effects and the Limits of Contracting: A study of the Indian Software Industry, Quarterly Journal of Economics. Vol. 115(3), pp Fernandez, Raquel and Alessandra Fogli (2009): Culture: An Empirical Investigation of Beliefs, Work, and Fertility, AEJ: Macroeconomics, Vol. 1(1), pp Greif, Avner (1993): Contract Enforceability and Economic Institutions in Early Trade: The Maghribi Traders Coalition. American Economic Review, Vol. 83(3), pp Guiso, L., P. Sapienza, and L. Zingales (2006): Does Culture Affect Economic Outcomes? Journal of Economic Perspectives, Vol. 20, pp Miguel, Edward and Ray Fisman (2007): Corruption, Norms and Legal Enforcement: Evidence from Diplomatic Parking Tickets, Journal of Political Economy, Vol. 115(6), pp Returns to Capital and Misallocation * Udry, Christopher, and Santosh Anagol "The Return to Capital in Ghana." American Economic Review, 96(2): * Kremer, Michael, Esther Duflo, and Jon Robinson Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya. American Economic Review 101, no. 6 (October 2011): * Duflo, Esther, Michael Kremer and Jonathan Robinson How High are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya. American Economic Review: Papers & Proceedings (2008):

12 * Hsieh, Chang-Tai and Peter Klenow (2009): Misallocation and Manufacturing TFP in China and India, Quarterly Journal of Economics, Vol. 124(4), pp * Banerjee, Abhijit and Esther Duflo, Growth theory through the Lens of Development Economics, in Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 3, chapter 1, Elsevier. * Banerjee and Mullainathan, The Shape of Temptation: Implications for the Economic Lives of the Poor, manuscript. Banerjee, A. and E. Duflo (2012): Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending Program, Working Paper. Caselli, Francesco (2005): Accounting for Cross-Country Income Differences, in Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, Edition 1, Volume 1, Chapter 9, pages Caselli, Francesco, and James Feyrer (2007): The Marginal Product of Capital, Quarterly Journal of Economics, Vol. 122(2), pp Fernald, John and Brent Neiman, (2011). "Growth Accounting with Misallocation: Or, Doing Less with More in Singapore," American Economic Journal: Macroeconomics, vol. 3(2), pages Foster, Lucia, John Haltiwanger and Chad Syverson (2008) Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability? American Economic Review, 98, Hopenhayn, Hugo A. (1992), Entry, Exit, and firm Dynamics in Long Run Equilibrium, Econometrica, 60:5, pp Jack, William, Michael Kremer, Joost De Laat, and Tavneet Suri, (2013) "Adoption of a New Water Technology: The Role of Joint Liability, Asset Collateralization, and Credit Access" Working Paper. Karlan, Dean Robert Osei, Isaac Osei-Akoto and Christopher Udry (2012) "Agricultural Decisions after Relaxing Credit and Risk Constraints" Working Paper Kremer, Michael, Jean Lee, Jonathan Robinson, and Olga Rostapshova (2013) "Behavioral Biases and Firm Behavior: Evidence from Kenyan Retail Shops." American Economic Review Papers and Proceedings. 12

13 Lucas, Robert (1990): Why doesn t capital flow from rich to poor countries? American Economic Review, Vol. 80(2), pp Melitz, Mark (2003) The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity. Econometrica, 71(6), pp Parente, Stephen, and Edward Prescott. Monopoly Rights: A Barrier to Riches, American Economic Review, 89(5), (1999). Song, Michael, Storlesseten, Kjetil and Zilibotti, Fabrizio (2011) Growing Like China, American Economic Review, 101, II. Shawn Cole Financial Development and Growth * Burgess, Robin, and Rohini Pande (2005): Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment, American Economic Review, Vol. 95(3), pp * La Porta, Rafael & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny (1998): Law and Finance, Journal of Political Economy, Vol. 106(6), pp *Rajan, Raghuram G. and Luigi Zingales (1998): Financial Dependence and Growth, American Economic Review, Vol. 88(3), pp Demirguc-Kunt, Asli, Thorsten Beck, and Patrick Honohan (2008): Finance for All? Policies and Pitfalls in Expanding Access, open access publications from Tilburg University. Guiso, Luigi, Paola Sapienza, and Luigi Zingales (2004): The Role of Social Capital in Financial Development, American Economic Review, Vol. 94(3), pp Household Finance / Insurance * Cole, Shawn, et al. "Barriers to household risk management: evidence from India." American Economic Journal: Applied Economics, 5.1 (2013): * Townsend, Robert M. (1994): Risk and Insurance in Village India, Econometrica, Vol. 62(3), pp * Banerjee, Abhijit; Duflo, Esther; Glennerster, Rachel and Kinnan, Cynthia: The Miracle of Microfinance? Evidence from a Randomized Evaluation, forthcoming, American Economic Journal: Applied Economics * Karlan, Dean, and Jon Zinman, Observing Unobservables: Identifying Information Asymmetries with a Consumer Credit Field Experiment (2009) Econometrica, 77(6):

14 Karlan, Dean, Robert Osei, and Isaac Osei-Akoto. "Agricultural Decisions after Relaxing Credit and Risk Constraints," forthcoming, Quarterly Journal of Economics Anagol, Santosh, Shawn Cole, and Shayak Sarkar (2011): Bad Advice: Explaining the Persistence of Whole Life Insurance, mimeo, Harvard Business School. Cole, Shawn A., Thomas Sampson, and Bilal Zia (2011): Prices or Knowledge? What Drives Demand for Financial Services in Emerging Markets? Forthcoming, Journal of Finance. Guiso, Luigi, Paola Sapienza, and Luigi Zingales (2008): Trusting the Stock Market, Journal offinance, 63(6), pp Paxson, C.H. (1992): Using Weather Variability to Estimate the Response of Savings to Transitory Income in Thailand, American Economic Review, Vol. 82(1), pp Small and Family Firms * Bertrand, Marianne, Simon Johnson, Krislert Samphantharak, Antoinette Schoar (2008): Mixing Family with Business: A Study of Thai Business Groups and the Families Behind Them, Journal of Financial Economics, Vol. 88 (3), pp * De Mel, Suresh, David McKenzie, and Christopher Woodruff (2008): Returns to Capital in Microenterprises: Evidence from a Field Experiment, Quarterly Journal of Economics, Vol. 123(4), pp Banerjee, Abhijit, and Esther Duflo (2005): Growth Theory through the Lens of Development Economics, in Steve Durlauf and Philippe Aghion, (eds.), Handbook of Economic Growth, Elsevier Science Ltd.-North Holland, Vol. 1A, pp Bertrand, Marianne and Antoinette Schoar (2006): The Role of Family in Family Firms, Journal of Economic Perspectives, Vol. 20(2), pp Hertzberg, Andrew, Jose Liberti, and Daniel Paravisini (2010): Public Information and Coordination: Evidence from a Credit Registry Expansion, Journal of Finance. Firms I: Debt * Khwaja, Asim and Atif Mian (2008): Tracing the Impact of Bank Liquidity Shocks: Evidence from an Emerging Market, American Economic Review, Vol. 98(4), pp * Hertzberg, Andrew, J Liberti, and D Paravisini (2010): Information and Incentives Inside the Firm: Evidence from Loan Officer Rotation, Journal of Finance Vol. 65(3), pp * Ponticelli, Jacopo Court Enforcement and Firm Productivity: Evidence from a Bankruptcy Reform in Brazil, December 2013, mimeo, University of Chicago 14

15 Liberti, Jose and Atif R. Mian (2010): Collateral Spread and Financial Development, Journal of Finance, Vol. 65(1), pp Khwaja, Asim, Atif Mian, and Bilal Zia (2010): Dollars Dollars Everywhere, Nor any Dime to Lend: Credit Limit Constraints on Financial Sector Absorptive Capacity, Review of Financial Studies, Vol. 23(12), pp Paravisini, Daniel (2008): Local Bank Financial Constraints and Firm Access to External Finance, Journal of Finance, Vol. 63(5), pp Firms II: Equity, Management, and Boards * Bertrand, M., Mehta, P. & Mullainathan, S. (2002): Ferreting Out Tunneling: An Application to Indian Business Groups, Quarterly Journal of Economics, Vol. 117(1), pp * Bloom, Nicholas, Benn Eifert, David McKenzie, Aprajit Mahajan & John Roberts (2012): Does Management Matter? Evidence from India Quarterly Journal of Economics, 128(1): Bruhn, Miriam, Dean Karlan, and Antoinette Schoar (2012), "The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico." Claessens, S., Djankov, S. & Lang, L.H.P. 2000: The Separation of Ownership and Control in East Asian Corporations, Journal of Financial Economics, Vol. 58(1-2), pp Dyck, A. & Zingales, L. (2004): Private Benefits of Control: An International Comparison, Journal of Finance, Vol. 59(2), pp Doidge, C., Karolyi, G.A. & Stulz, R. (2004): "Why Are Foreign Firms Listed in the U.S. Worth More?" Journal of Financial Economics, Vol. 71(2), pp Johnson, Simon, R. La Porta, F. Lopez-de-Silanes, and A. Shleifer (2000): Tunneling, American Economic Review P&P, Vol. 90(2), pp Lerner, J. & Schoar, A. (2005): Does Legal Enforcement Affect Financial Transactions? The Contractual Channel in Private Equity, Quarterly Journal of Economics, Vol. 120(1), pp Mian, Atif, A Khwaja and A Qamar (2010): The Value of Super Networks, mimeo, Harvard University. Porta, R., Lopez-de-Silanes, F. & Shleifer, A. (2002): "Government Ownership of Banks, Journal of Finance, Vol. 57(1), pp Political Economy and Finance 15

16 * Fisman, R. (2001): Estimating the Value of Political Connections, American Economic Review, Vol. 91(4), pp * Cole, Shawn (2009): Fixing Market Failures or Fixing Elections, American Economic Journal: Applied Economics, Vol. 1(1), pp * Faccio, M. (2006): Politically Connected Firms, American Economic Review, Vol. 96, no. 1, pp Khwaja, A.I. & Mian, A. (2005): Do Lenders Favor Politically Connected Firms? Rent Provision in an Emerging Financial Market, Quarterly Journal of Economics, Vol. 120(4), pp Brown, Craig and Dinc, I. Serdar (2005): The Politics of Bank Failures: Evidence from Emerging Markets, Quarterly Journal of Economics, Vol. 120(4), pp Osili, Okonkwo, and Anna Paulson (2008): Institutions and Financial Development: Evidence from International Migrants in the United States, Review of Economics and Statistics, Vol. 90(3), pp III. Nathan Nunn 1. Macro Theories of Economic Development * Easterly, William. (2001). The Elusive Quest for Growth: Economists Adventures and Misadventures in the Tropics. Cambridge, MA: MIT Press, Chapters 1, 2, and 3. * Kremer, Michael. (1993). The O-Ring Theory of Economic Development, Quarterly Journal of Economics, 108(3): Lewis, W. Arthur. (1954). Economic Development with Unlimited Supplies of Labour, Manchester School, 22(2): Gollin, Douglas. (2014). The Lewis Model: A 60-Year Retrospective, Journal of Economic Perspectives, 28(3): Solow, Robert M. (1956). A Contribution to the Theory of Economic Growth, Quarterly Journal of Economics, 70(1): Rostow, Walt W. (1960). The Stages of Economic Growth: A Non-Communist Manifesto. Cambridge, Cambrige University Press. Baumol, William J. (1986). Productivity Growth, Convergence, and Welfare: What the Long- Run Data Show, American Economic Review, 76(5):

17 Makiw, N. Gregory, David Romer, and David N. Weil. (1992). A Contribution to the Empirics of Economic Growth, Quarterly Journal of Economics, 107(2): Klenow, Peter and Andres Rodriguez-Clare. (1997). The Neoclassical Revival in Growth Economics: Has It Gone Too Far? In Bernanke and Rotemberg (eds.) NBER Macroeconomics Annual 1997, Volume 12, pp Grier, Kevin and Robin Grier. (2007). Only Income Diverges: A Neoclassical Anomaly, Journal of Development Economics, 84: Easterly, William and Ross Levine. (2001). What have we Learned from a Decade of Empirical Research on Growth? It s Not Factor Accumulation: Stylized Facts and Growth Models, World Bank Economic Review, 15(2): Overpopulation and Scale Effects * Kremer, Michael. (1993). Population Growth and Technological Change: One Million B.C. to 1990, Quarterly Journal of Economics, 108 (3): * Andre, Catherine and Jean-Philippe Platteau. (1998). Land Relations under Unbearable Stress: Rwanda Caught in the Malthusian Trap, Journal of Economic Behavior & Organization, 34(1): * Henrich, Joseph. (2004). Demography and Cultural Evolution: How Adaptive Cultural Processes can Produce Maladaptive Losses: The Tasmanian Case, American Antiquity, 69(2): * Rogall, Thorsten and David Yanagizawa-Drott. (2013). The Legacy of Political Mass Killings: Evidence from the Rwandan Genocide, Harvard University, working paper. Young, Alwyn. (2005). The Gift of Dying: The Tragedy of Aids and the Welfare of Future African Generations, Quarterly Journal of Economics, 120 (2): Jeffrey Herbst. (2000). States and Power in Africa. Princeton: Princeton University Press. Diamond, Jared. (2005). Collapse: How Societies Fail and Succeed. New York: Viking Press, Chapter 10. Miguel, Edward, Shanker Satyanath and Ernest Sergenti. (2005). Economic Shocks and Civil Conflict: An Instrumental Variables Approach, Journal of Political Economy, 112(4): Urdal, Henrik. (2005). People vs. Malthus: Population Pressure, Environmental Degredation, and Armed Conflict, Journal of Peace Research, 42(4):

18 Greenstone, Michael, Richard Hornbeck and Enrico Moretti. (2010). Identifying Agglomeration Spillovers: Evidence from Winners and Losers of Large Plant Openings, Journal of Political Economy, 118 (3): Corruption and Leaders * Stackhouse, John, A Despot s Delight, Chapter 7 in Out of Poverty. Random House Canada, pp * Jones, Ben and Benjamin Olken. (2005). Do Leaders Matter? National Leadership and Growth since World War II, Quarterly Journal of Economics, 120(3): * Duflo, Esther and Raghabendra Chattopadhyay. (2004). Women as Policy Makers: Evidence from a Randomized Policy Experiment in India, Econometrica 72(5): * Reinikka, Ritva, and Jakob Svensson. (2004). Local Capture: Evidence from a Central Government Transfer Program in Uganda, Quarterly Journal of Economics, 119(2): * Khwaja, Asim Ijaz and Atif Mian. (2005). Do Lenders Favor Politically Connected Firms? Rent Provision in an Emerging Financial Market, Quarterly Journal of Economics, 120(4): * Olken, Benjamin. (2007). Monitoring Corruption: Evidence from a Field Experiment in Indonesia, Journal of Political Economy, 115(2): Beaman, Lori, Raghabendra Chattopadhyay, Esther Duflo, and Petia Topalova. (2009). Powerful Women: Does Exposure Reduce Prejudice? Quarterly Journal of Economics, 124 (4): Jones, Benjamin and Benjamin Olken. (2009). Hit or Miss? The Effect of Assassinations on Institutions and War, American Economic Journal: Macroeconomics, 1(2): Franck, Rafael, and Ilia Rainer. (forthcoming). Does the Leader s Ethnicity Matter? Ethnic Favoritism, Education and Health in Sub-Saharan Africa, American Political Science Review. Bjorkman, Martina and Jakob Svensson. (2009). Power to the People: Evidence from a Randomized Field Experiment on Community-Based Monitoring in Uganda, Quarterly Journal of Economics, 124(2): Ferraz, Claudio and Fred Finan. (2011). Electoral Accountability and Corruption in Local Governments: Evidence from Audit Reports, American Economic Review, 101: Ferraz, Claudio and Fred Finan. (2008). Exposing Corrupt Politicians: The Effect of Brazil s Publicly Released Audits on Electoral Outcomes, Quarterly Journal of Economics, 123(2):

19 Olken, Benjamin and Rohini Pande, (2012). Corruption in Developing Countries, Annual Review of Economics, 4: Ethnicity * Habyarimana, James, Macartan Humphreys, Daniel N. Posner, and Jeremy M. Weinstein. (2007). Why Does Ethnic Diversity Undermine Public Goods Provision? American Political Science Review, 101 (4): * Hjort, Jonas. (2013). Ethnic Divisions and Production in Firms, Quarterly Journal of Economics, forthcoming. Francois, Patrick, Ilia Rainer and Francesco Trebbi. (2012.) How is Power Shared in Africa? Mimeo, University of British Columbia. Easterly, William, and Ross Levine. (1997). Africa s Growth Tragedy: Policies and Ethnic Divisions, Quarterly Journal of Economics, 112 (4): Michalopoulos, Stelios. (2012). The Origins of Ethnolinguistic Diversity: Theory and Evidence, American Economic Review, 102 (4): Quamrul, Ashraf and Oded Galor. (2013). Genetic Diversity and the Origins of Cultural Fragmentation, American Economic Review Papers and Proceedings, Habyarimana, James, Macartan Humphreys, Daniel N. Posner, and Jeremy M. Weinstein. (2009). Coethnicity: Diversity and the Dilemmas of Collective Action. New York: Russell Sage. Pappaioanou, Elias and Stelios Michalopoulos. (2011). The Long-Run Effects of the Scramble for Africa, NBER Working Paper Alesina, Alberto, Stelios Michalopoulos and Elias Papaioannou. (2012). Ethnic Inequality, NBER Working Paper Alesina, Alberto and Ekaterina Zhuravskaya. (2011). Segregation and the Quality of Government in a Cross Section of Countries, American Economic Review, 101(5): Montalvo, Jose G. and Marta Reynal-Querol. (2005). Ethnic Polarization, Potential Conflict, and Civil Wars, American Economic Review, 95(3): Esteban, Joan, Laura Mayoral, and Debraj Ray. (2012). Ethnicity and Conflict: An Empirical Study, American Economic Review, 102(4): Culture 19

20 * Stackhouse, John, Daddy George, Chapter 6 in Out of Poverty. Random House Canada, pp * Jakiela, Pamela and Owen Ozier. (2012). Does Africa Need a Rotten Kid Theorem? Experimental Evidence from Village Economies, Mimeo, University of Maryland. * Henrich et al. (2010). Markets, Religion, Community Size, and the Evolution of Fairness and Punishment, Science, 327: Clingingsmith, David, Asim Ijaz Khwaja, and Michael Kremer (2009). Estimating the Impact of the Hajj: Religion and Tolerance in Islam s Global Gathering, Quarterly Journal of Economics, 124(3): Henrich, Joseph, Robert Boyd, Sam Bowles, Colin Camerer, Herbert Gintis, Richard McElreath and Ernst Fehr. (2001). In search of Homo Economicus: Experiments in 15 Small-Scale Societies, American Economic Review, 91(2): Henrich et al. (2005). Economic Man in Cross-Cultural Perspective: Behavioral Experiments in 15 Small-Scale Societies, Behavioral and Brain Sciences, 28: Campante, Filipe and David Yanagizawa-Drott. (2013). Does Religion Affect Economic Growth and Happiness? Evidence from Ramadan, Mimeo, Harvard University. Madestam, Andreas and David Yanagizawa-Drott. (2013). Shaping the Nation: The Effect of the Fourth of July on Political Preferences and Behavior in the United States, Mimeo, Harvard University. Nunn, Nathan and Leonard Wantchekon. (2011). The Slave Trade and the Origins of Mistrust in Africa, American Economic Review, 101(7): Alberto Alesina, Paola Giuliano and Nathan Nunn. (2012). On the Origins of Gender Roles: Women and the Plough, Quarterly Journal of Economics, 128(2): Jensen, Robert and Emily Oster. (2009). The Power of TV: Cable Television and Women s Status in India, Quarterly Journal of Economics, 124(3): La Ferrera, Eliana, Alberto Chong, and Suzanne Duryea Soap Operas and Fertility: Evidence from Brazil, American Economic Journal: Applied Economics, 4(4): Gorodnichenko, Yuriy and Gerard Roland. (2013). Culture, Institutions, and the Wealth of Nations, Mimeo, University of California Berkeley. Giuliano, Paola and Antonio Spilimbergo. (forthcoming). Growing up in a Recession, Review of Economic Studies. Jakiel, Pamela. (2014). How Fair Shares Compare: Experimental Evidence from Two Cultures, Mimeo, University of Maryland. 20

21 6. Trade and Industrial Policy * Chang, Ha-Joon. (2003). Kicking Away the Ladder: Infant Industry Promotion in Historical Perspective, Oxford Development Studies, 31, * Edmonds, Eric, Nina Pavcnik and Petia Topalova. (2010). Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform, American Economic Journal: Applied Economics, 2(4): * McCaig, Brian. (2011). Exporting Out of Poverty: Provincial Poverty in Vietnam and U.S. Market Access, Journal of International Economics, 85(1): * Nunn, Nathan and Daniel Trefler. (2010). The Structure of Tariffs and Long-Term Growth, American Economic Journal: Macroeconomics, 2 (4): Lileeva, Alla and Daniel Trefler. (2010). Improved Access to Foreign Markets Improves Plant- Level Productivity For Some Plants, Quarterly Journal of Economics, 125(3): Goldberg, Penelope, Amit Khandelwal, Nina Pavcnik, and Petia Topalova. (2010.) Imported Intermediate Inputs and Domestic Product Growth: Evidence from India, Quarterly Journal of Economics, 125 (4): Pavcnik, Nina. (2002.) Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants, Review of Economic Studies, 69: Aghion, Philippe, Mathias Dewatripont, Luosha Du, Ann Harrison, Patrick Legos. (2012). Industrial Policy and Competition, NBER Working Paper Brambilla, Irene, Guido Porto and Alessandro Tarozzi. (2012). Adjusting to Trade Policy: Evidence from U.S. Antidumping Duties on Vietnamese Catfish, Review of Economics and Statistics, 94(1): Bruton, Henry J. (1998). A Reconsideration of Import Substitution, Journal of Economic Literature, 36: Krugman, Paul. (1987). The Narrow Moving Band, the Dutch Disease, and the Competitive Consequences of Mrs. Thatcher: Notes on Trade in the Presence of Dynamic Scale Economies, Journal of Development Economics, 27 (1-2): Levitt, Steven D., John A. List and Chad Syverson. (2012). Towards an Understanding of Learning by Doing: Evidence from an Automobile Assembly Plant, Journal of Political Economy, forthcoming. 21

22 Krueger, Anne O. (1997). Trade Policy and Economic Development: How We Learn, American Economic Review, 87(1): Krueger, Anne O. (1974). The Political Economy of the Rent-Seeking Society, American Economic Review, 64(3): Grossman, Gene and Elhanan Helpman. (1991). Innovation and Growth in the Global Economy. Cambridge: MIT Press. 7. External Influence and International Relations * Berger, Daniel, William Easterly, Nathan Nunn and Shanker Satyanath. (2013). Commercial Imperialism? CIA Interventions and Trade during the Cold War, American Economic Review, 103(2): * Kuziemko, Ilyana and Eric Werker. (2006). How Much is a Seat on the UN Security Council Worth? Journal of Political Economy, 114: Kilby, Christopher. (2009). The Political Economy of Conditionality: An Empirical Analysis of World Bank Loan Disbursements, Journal of Development Economics, 89: Dreher, Axel, Jan-Egbert Sturm, and James Vreeland. (2009.) Development Aid and International Politics: Does Membership on the U.N. Security Council Influence World Bank Decisions? Journal of Development Economics, 88: Dreher, Axel, Jan-Egbert Sturm, and James Vreeland. (2009.) Global Horse Trading: IMF Loans for Votes in the United Nations Security Council European Economic Review, 53: Dreher, Axel and Nathan M. Jensen. (2007). Independent Actor or Agent? An Empirical Analysis of the Impact of U.S. Interests on International Monetary Fund Conditions, Journal of Law & Economics, 50: Foreign Aid * Nunn, Nathan and Nancy Qian. (2014). U.S. Food Aid and Civil Conflict, American Economic Review, 104 (6): * Crost, Benjamin, Joseph Felter, and Patrick B. Johnston. (2014). Aid Under Fire: Development Projects and Civil Conflict, American Economic Review, 104 (6): Werker, Eric D., Faisal Z. Ahmed and Charles Cohen. (2009). How is Foreign Aid Spent? Evidence from a Natural Experiment, American Economic Journal: Macroeconomics, 1(2):

23 Galiani, Sebastian, Stephen Knack, Lixin Colin Xu, and Ben Zhou. (2014). The Effect of Aid on Growth: Evidence from a Quasi-Experiment, Mimeo, World Bank. Dube, Oeindrila and Suresh Naidu. (2012). Bases, Bullets and Ballots: The Effect of U.S. Military Aid on Political Conflict in Colombia, Mimeo, NYU. Clemens, M.A., Radelet, S. and Bhavnani, R.R. and Bazzi, S. (2012). Counting Chickens When They Hatch: Timing And The Effects Of Aid On Growth, Economic Journal, 122: Easterly, William. (2003). Can Foreign Aid Buy Growth? Journal of Economic Perspectives, 17(3): Burnside, Craig and David Dollar. (2000). Aid, Policies, and Growth, American Economic Review, 90: Easterly, William. (2007). Was Development Assistance a Mistake? American Economic Review Papers and Proceedings, 97(2):