Norwegian or english

Spring

More than a billion individuals, mostly in low and middle income countries, live on less than $1.25 a day. The aim of this course is to broadly address the question: why are poor countries poor? In particular, we seek to identify both features of the organization of a poor economy as well as its external environment that could generate, perpetuate, and alleviate poverty at the macro-level. A mix of theoretical and empirical studies are utilised for this purpose. Among other topics, the following are highlighted:

• What are the relationships among growth, inequality, and poverty?
• What are the empirical patterns of growth?
• What are the deep determinants of economic development?

Having completed the course, the students should be able to:

• Explain the central characteristics of the economic development after the industrial revolution.
• Critically assess how to measure economic and social development.
• Explain different measures of poverty and inequality, and how these affect and are affected by the level of income in an economy.
• Understand different theories of economic growth and how these explain empirical patterns in growth and prosperity.
• Understand how economic transactions on the micro-level in poor countries are characterized by information asymmetry, transaction costs and incomplete contracts.

A good knowledge of economics is recommended.

Lectures

There is one assignment in the course that is obligatory. The assignment is to be graded approved or not approved. The grade for the course is based on the written examination provided that the students have passed the assignment. The obligatory assignment is valid for this and the three following terms.

4 hours written exam

All the courses at the Department of Economics are evaluated at the end of each semester.

Department of Economics

E-mail: studieveileder@econ.uib.no

Tlf: +47 55 58 92 26