Development Economics: Theory, Empirical Research, and Policy Analysis by Julie Schaffner teaches students to think about development in a way that is disciplined by economic theory, informed by cutting-edge empirical research, and connected in a practical way to contemporary development efforts. It lays out a framework for the study of developing economies that is built on microeconomic foundations and that highlights the importance in development studies of transaction and transportation costs, risk, information problems, institutional rules and norms, and insights from behavioral economics. It then presents a systematic approach to policy analysis and applies the approach to policies from around the world, in the areas of targeted transfers, workfare, agricultural markets, infrastructure, education, agricultural technology, microfinance, and health.
Part I Introduction
1 What Is Development Economics Good For? 1
Part II Development Objectives and the Big Picture
2 Well-Being 16
3 Economic Growth 34
4 Economic Growth Theory in Historical Perspective 57
5 Poverty, Inequality, and Vulnerability 84
Part III Analytical Framework: Decisions, Markets, and Institutions
6 Consumption, Time Allocation, and Production Choices 108
7 Households 142
8 Domestic Markets for Goods and Services 174
9 Labor Markets 208
10 Investment and Financial Markets 242
11 International Markets and General Equilibrium 280
12 Institutions and Cooperation 314
13 Policy, Governance, and Political Economy 346
Part IV Policy Analysis Approach and Applications
14 Policy Analysis 377
15 Targeted Transfer Programs 391
16 Workfare 417
17 Agricultural Market Interventions and Reforms 442
18 Infrastructure Policies and Programs 471
19 Education 496
20 Agricultural Research and Extension 523
21 Microfinance 548
22 Public Health, Health Care, and Health Insurance 575
Appendix A Interpreting and Evaluating Empirical Evidence 609
Appendix B Glossary 641
- Theoretical framework that guides students through the study of how developing country households make important choices about consumption, time use, production, saving, and investment; of what happens when they interact with one another in markets and non-market settings; and of why and how policymakers might intervene to improve development outcomes.
- Systematic approach to policy analysis that guides students through rigorous and comprehensive study of policies’ benefits and costs, and of how changes in policies’ designs or governance structures might alter their benefits and costs.
- Emphasis on empirical evidence that teaches students the importance of bringing theory into contact with reality through research that reveals which theoretically possible causes (for development problems) or effects (of development policies) are likely to be practically important in particular contexts.
- Questions for review, questions for discussion and problems at the ends of chapters that help students to identify and deepen their understanding of the chapters’ main points and challenge them to apply the chapters’ analytical tools to new questions.