Development Economics II

  1. Poverty and Inequality

Measurement of poverty and inequality, Inequality and Growth: inverted-U hypothesis, Human Development Indices, Capabilities approach, Poverty alleviation programmes, Government policies and inequality, Functional impact of poverty: credit and insurance, Nutrition and labour markets, Intra-household bargaining and unequal sharing of poverty: within-household inequality. 

  1. Health and Education

Access to health and education, Interrelation between health, education and productivity, Government policies to improve health and education. 

  1. The Dual Economy

Structure of dual economy, The Lewis Model, Migration, Harris-Todaromodel, Rural-urban wage gap, Unemployment and surplus labour: wage productivity model, surplus labour and efficiency wage, collusive theory of unemployment 

  1. Land and Labour

Land: land rental contracts, forms of tenancy, moral hazard problems and sharecropping, land ownership; Labour: Nutrition, time and causal labour markets, model of nutritional status, Permanent labour markets. 

  1. Credit and Insurance

Credit markets: sources of rural credit, theories of informal credit markets, interlinked transactions and enforcement of credit contracts, microfinance: Insurance: perfect insurance model, asymmetric information and insurance markets, enforcement and imperfect insurance; Social security models. 


  1. Ray D (1998)Development Economics. Oxford University Press. India.

  2. Basu K (1997) Analytical Development Economics: The Less Developed Economy Revisited. MIT.

  3. Bardhan P, Urdy C. (1999) Development Microeconomics. Oxford University Press. New York.

  4. Sen A. (1995) Inequality Reexamined. Oxford University Press. India

  5. Banerjee A, Duflo E. (2011). Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty. Random House Publishers. India.