Week 2-Capital accumulation, growth, and development


What are the main determinants of growth in the short and in the long run? How can countries achieve long-term per-capita growth? What is the role of investment and capital to understand development disparities?


- Chapter 3, and section 5.2, in Development Economics (Debraj Ray)
- "Aid for Investment" in The Elusive Quest For Growth (Easterly) pp: 25-45
- “Solow's Surprise: Investment is not the key to growth” in The Elusive Quest For Growth (Easterly) pp: 48-70
- Chapters 2 and 3 in Easterly The White Man's Burden, pp: 37-110

- Chapter 5: "I've seen the future and it works",  in Why Nations Fail, 2012.
- Acemoglu et. al, "Institutions, Human Capital, and Development", The Annual Review of Economics, vol. 6, 2014.
- Jensen, R. (2007) "The digital provide: information (technology), market performance, and welfare in the South-Indian fisheries sector", QJE


Assignment 1

Solve Problem Set 1



Assignment 2

Assignment 3

“To explain underdevelopment we need to explain why incentives to accumulate factors of production are so weak in some poor countries.”  Discuss