draft - kellogg.northwestern.edu … · poor economics: a radical rethinking of the way to fight...

8
Topics in Development Economics: Firms, Growth and the Political Economy Times: TBA, Spring 2020 Location: TBA Instructors: Prof. Ameet Morjaria Office Location: KGH 4127 Office Hours: TBA Contact: [email protected] Prof. Nancy Qian Office Location: KGH 4135 Office Hours: TBA Contact: [email protected] Prof. Edoardo Teso Office Location: KGH 4175 Office Hours: TBA Contact: [email protected] Description This course introduces Ph.D. students to three important topics within development economics: firms, long-run development, and political economy. This course familiarizes students with the frontier of the literature, the questions being asked, the methods most prevalently used, and the evidence thus far. Some examples of topics that we will cover include: contract enforcement, relational contracting, misallocation, firm organization, corruption, foreign aid, conflict, and institutions. The class will focus on empirical methods and how they connect with theory. The ultimate goal of this course is to help students transition into the research phase of their career -- to help students formulate interesting, relevant and feasible research agendas. Prerequisites: Graduate microeconomics, macroeconomics, and econometrics. Grading: 100% In-class presentations and discussions. Required readings are listed with * in the syllabus. Additional readings: Acemoglu, D., & Robinson, J. A. (2012). Why nations fail: The origins of power, prosperity, and poverty. New York: Crown Business. Aghion, P., Dewatripont, M., Legros, P., & Zingales, L. (2016). The impact of Incomplete Contracts on Economics, New York: Oxford University Press. Gibbons, R., Roberts, J. (2013). The Handbook of Organizational Economics. Princeton: Princeton University Press. DRAFT

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Page 1: DRAFT - kellogg.northwestern.edu … · Poor economics: A radical rethinking of the way to fight global poverty. New York: Public Affairs. Deaton, A. (2013). The Great Escape: health,

Topics in Development Economics Firms Growth and the Political Economy

Times TBA Spring 2020 Location TBA

Instructors Prof Ameet Morjaria Office Location KGH 4127 Office Hours TBA Contact amorjariakelloggnorthwesternedu

Prof Nancy Qian Office Location KGH 4135 Office Hours TBA Contact nancyqiankelloggnorthwesternedu

Prof Edoardo Teso Office Location KGH 4175 Office Hours TBA Contact edoardotesokelloggnorthwesternedu

Description This course introduces PhD students to three important topics within development economics firms long-run development and political economy This course familiarizes students with the frontier of the literature the questions being asked the methods most prevalently used and the evidence thus far Some examples of topics that we will cover include contract enforcement relational contracting misallocation firm organization corruption foreign aid conflict and institutions The class will focus on empirical methods and how they connect with theory The ultimate goal of this course is to help students transition into the research phase of their career -- to help students formulate interesting relevant and feasible research agendas

Prerequisites Graduate microeconomics macroeconomics and econometrics

Grading 100 In-class presentations and discussions

Required readings are listed with in the syllabus

Additional readings

Acemoglu D amp Robinson J A (2012) Why nations fail The origins of power prosperity and poverty New York Crown Business

Aghion P Dewatripont M Legros P amp Zingales L (2016) The impact of Incomplete Contracts on Economics New York Oxford University Press

Gibbons R Roberts J (2013) The Handbook of Organizational Economics Princeton Princeton University Press

DRAFT

Banerjee A Duflo E (2011) Poor economics A radical rethinking of the way to fight global poverty New York Public Affairs Deaton A (2013) The Great Escape health wealth and the origins of inequality Princeton Princeton University Press Syllabus (Subject to Change) April 1 2019 Week 1 Lecture 1A Introductory Lecture [Nancy Edoardo and Ameet] What is development Why is it important to study firms political economy and long-run development The four pillars of development demographics human capital institutions and culture Lecture 1A ldquoInstitutionsrdquo matter and persist Eduardo Acemoglu D Johnson S Robinson J (2001) Reversal of Fortune Geography and Institutions in the Making of the Modern World Income Distribution Quarterly Journal of Economics 117

1231-1294 Acemoglu D Johnson S Robinson J (2001) The Colonial Origins of Comparative Development An

Empirical Investigation American Economic Review 91 1369-1401 Jones B Olken B (2005) Do Leaders Matter National Leadership and Growth Since World War II Quarterly Journal of Economics 120 835-864 Easterly W Levine R (1997) Africas Growth Tragedy Policies and Ethnic Divisions The Quarterly Journal of Economics 112 1203-1250 La Porta R Lopez-de-Silanes F Shleifer A Vishny R (1998) Law and Finance Journal of Political Economy 106 1113-1155 Banerjee A Iyer L (2005) History Institutions and Economic Performance The Legacy of Colonial Land Tenure Systems in India American Economic Review 95 1190-1213

Piketty T (2003) Income Inequality in France 1901ndash1998 The Journal of Political Economy 1115 1004-1042

Mario Dell M (2010) The Persistent Effects of Perus Mining Mita Econometrica 78(6) 1863-1903 Bleakely H Lin J (2012) Portage and Path Dependence Quarterly Journal of Economics 127 587-644 Lecture 1B Where do institutions come from

DRAFT

Acemoglu D Johnson S Robinson J Yared P (2008)Income and Democracy American Economic

Review 98(3) 808-842 Jimmy Acemoglu D Robinson J (2000) Why Did the West Extend the Franchise Growth Inequality and Democracy in Historical Perspective Quarterly Journal of Economics 15 1167-1199 Martinez-Bravo M Gerard P Qian N Yang Y (2017) The Rise and Fall of Local Elections in China NBER Working Paper Lecture 2A Culture Matters and Persists Jose Algan Y Cahuc P (2010) Inherited Trust and Growth American Economic Review 100 (5) 2060-2092 Kensuke Grosjean P Khattar R (2018) Itrsquos Raining Men Hallelujah The Long-Run Consequences of Male-Biased Sex Ratios Review of Economic Studies Forthcoming Fernandez R (2010) Does culture matter Benhabib J Jackson M Bisin A Handbook of Social Economics Vol 1A Amsterdam North-Holland Publishing Fernandez R Fogli A (2009) Culture An Empirical Investigation of Beliefs Work and Fertility American Economic Journal Macroeconomics 1 146-177 Guiso L SapienzaP Zingales L (2006) Does Culture Affect Economic Outcomes Journal of Economic Perspectives 20 23-48 Guiso Luigi Paola Sapienza and Luigi Zingales (2009) ldquoCultural Biases in Economic Exchangerdquo Quarterly Journal of Economics 124 1095-1131 Algan Y Cahuc P (2013) Trust and Growth Annual Review of Economics 5 521-549 Grosfeld I Rodnyansky A Zhuravskaya E (2013) Persistent Anti-Market Culture A Legacy of the Pale of Settlement after the Holocaust American Economic Journal Economic policy 5(3) 189-226 Lecture 2B The Origins of Cultural Norms Jingpu Nunn N Wantchekon L (2011) The Slave Trade and the Origins of Mistrust in Africa American Economic Review 1017 3221-3252 Siddarth Lowes S Montero E (2019) The Legacy of Colonial Medicine in Central Africa University of Bocconi Working Paper Alsan M Wanamaker M (2017 ) Tuskegee and the Health of Black Men Quarterly Journal of Economics 133(1) 407-455 Lecture 3A The Relationship Between Cultural Norms and Formal Institutions

DRAFT

Reem Nunn N Qian N Wen J (2017) Trust Growth and Political Turnover Northwestern Working Paper

Jimmy Martinez-Bravodagger M Padro I MiguelDagger G Qian1113088 N Xu Y Yao Y (2017) Making Democracy Work Formal Institutions and Culture in Rural China NBER working paper Putnam R Leonardi R Nanetti R (1993) Making Democracy Work Civic Traditions in Modern Italy Princeton NJ Princeton University Press

Lecture 3B Administrative Capacity

Besley T Persson T (2010) State Capacity Conflict and Development Econometrica Econometric Society vol 78(1) 1-34 Matteo Besley T Persson T (2009)The Origins of State Capacity Property Rights Taxation and Politics American Economic Review American Economic Association 99(4) 1218-1244 Gennaioli N Voth H (2013) State Capacity and Military Conflict Review of Economic Studies 82(4) 1409-1448 Eduardo Meng X Qian N Yared P (2015) Chinarsquos Great Famine 1959-61 The Review of Economic Studies 82(4) 1568-1611 Lecture 4A Identity Jose Nix E Qian N (2015) The Fluidity of Race Passing in the United States 1860-1940 NBER Working Paper Cassan G (2015) Identity Based Policies and Identity Manipulation Evidence from Colonial Punjab American Economic Journal Economic Policy 7(4) 103-131 Kensuke Jia R Persson T (2017) Individual vs Social Motives in Identity Choice Theory and Evidence from China UCSD Working Paper Lecture 4B Immigration and Long-run Cultural Change

Jingpu Sequeira S Nunn N Qian N (2017) The Making of America The long-run effect of immigration in the United States NBER Working Paper

Mario Tabellini M (2018) Gifts of the Immigrants Woes of the Natives Lessons from the Age of Mass Migration Harvard Business School Working Paper

DRAFT

Lecture 5A Human capital from a macro and long-run perspective Reem Lagakos D Moll B Porzio T Qian N Schoellman T (2018) Life-Cycle Wage Growth Across Countries Journal of Political Economy 126(2) 797-849 Jimmy Nunn N Qian N (2011) The Potatos Contribution to Population and Urbanization Evidence from a Historical Experiment Quarterly Journal of Economics 126 (2) 593-650 Lecture 5B Conflict Satyanath S Sergenti E (2004) Economic Shocks and Civil Conflict An Instrumental Variables Approach Journal of Political Economy 112(4) 725-753 Matteo Dube O Varga J (2013) Commodity Price Shocks and Civil Conflict Evidence from Colombia Review of Economic Studies 80(4) 1384-1421 Siddarth Nunn N Qian N (2014) US Food Aid and Civil Conflict American Economic Review 104(6) 1630-1666 Crost B Felter J Johnston P (2014) Aid under Fire Development Projects and Civil Conflict American Economic Review 104(6) 1833-1856 Dell M (2015) Trafficking Networks and the Mexican Drug War American Economic Review 105(6) 1738-1779 Abadie A Garbeazabal J (2003) The Economic Costs of Conflict A Case Study of the Basque Country American Economic Review 93(1) 113-132 Caselli F Morelli M Rohner D (2015) The Geography of Interstate Resource Wars The Quarterly Journal of Economics 130(1) 267-315 Collier P Hoffler A (1998) On economic causes of civil war Oxford Economic Papers 50 563-573 Fearon J Laitin D (2003) Ethnicity Insurgency and Civil War American Political Science Review 97(1) 75-90 Blattman C Miguel E (2010) Civil War The Journal of Economic Literature 48(1) 3-57 Qian N (2015) Making Progress on Foreign Aid Annual Review of Economics 7 277-308 Nunn N Qian N (2010) The Determinants of Food Aid Provisions to Africa and the Developing World NBER Working Papers 16610 National Bureau of Economic Research Inc Lecture 6A Political Accountability and Political Selection [Edoardo]

Besley Timothy and Robin Burgess ldquoThe Political Economy of Government Responsiveness Theory and Evidence from Indiardquo The Quarterly Journal of Economics Vol 117 No 4 (Nov 2002) pp 1415-

DRAFT

1451 Dal Bo Ernesto and Frederico Finan ldquoProgress and Perspectives in the Study of Political Selectionrdquo Annual Review of Economics (2018)

Fujiwara Thomas ldquoVoting Technology Political Responsiveness and Infant Health Evidence from Brazilrdquo (2015) Econometrica 832 Casey Katherine ldquoCrossing Party Lines The Effects of Information on Redistributive Politicsrdquo (2015) American Economic Review 1058 Munshi Kaivan and Mark Rosenzweig ldquoEthnic Diversity and the Under-Supply of Local Public Goodsrdquo Working paper (2018) Banerjee Abhijit Rema Hanna Jordan Kyle Ben Olken and Sudarno Sumarto ldquoTangible Information and Citizen Empowerment Identification Cards and Food Subsidy Programs in Indonesiardquo Journal of Political Economy (2018) 1262 Bidwell Kelly Katherine Casey and Rachel Glennerster ldquordquoDebates Voting and Expenditure Responses to Political Communicationrdquo Working paper (2018) Finan Frederico and Laura Schechter ldquoVote-Buying and Reciprocityrdquo (2012) Econometrica 802

Lecture 6B Selection and incentives of bureaucrats and frontline public service providers [Edoardo]

Finan Frederico Benjamin A Olken and Rohini Pande The personnel economics of the state No w21825 National Bureau of Economic Research 2015 Dal Boacute Ernesto Frederico Finan and Martiacuten A Rossi Strengthening state capabilities The role of financial incentives in the call to public service The Quarterly Journal of Economics1283 (2013) 1169-1218 Ashraf Nava Oriana Bandiera and Scott S Lee Do-gooders and go-getters career incentives selection and performance in public service delivery Working Paper (2016) Deserranno Erika Incentives as signal Experimental evidence from the recruitment of village health promoters Working Paper (2016) Hoffman Mitchell Lisa B Kahn and Danielle Li Discretion in hiring The Quarterly Journal of Economics 1332 (2017) 765-800 Rasul Imran and Daniel Rogger The impact of ethnic diversity in bureaucracies Evidence from the Nigerian civil service The American Economic Review PampP 1055 (2015) 457

Colonnelli Emanuele Mounu Prem and Edoardo Teso ldquoPatronage and Selection in public Sector Organizationsrdquo Working paper (2018)

DRAFT

Bertrand Marienne Robin Burgess Arunish Chawla and Guo Xu The Glittering Prizes Career Incentives and Bureaucrat Performance Working paper (2017) Girum Abebe Stefano Caria Esteban Ortiz-Ospina ldquoThe Selection of Talent Experimental and Structural Evidence from Ethiopiardquo Working Paper (2018) Akhtari Mitra Diana Moreira and Laura Trucco ldquoPolitical Turnover Bureaucratic Turnover and the Quality of Public Servicesrdquo Working paper (2017)

Lecture 7A and 7B Corruption [Edoardo]

Banerjee Abhijit Rema Hanna and Sendhil Mullainathan ldquoCorruptionrdquo (2013) Handbook of Organizational Economics Olken Ben and Rohini Pande ldquoCorruption in Developing Countriesrdquo (2012) Annual Review of Economics Shleifer Andrei and Robert Vishny ldquoCorruptionrdquo (1993) Quarterly Journal of Economics Olken Ben ldquoMonitoring Corruption Evidence from a Field Experiment in Indonesiardquo (2007) Journal of Political Economy 115 (2) Olken Ben and Patrick Barron ldquoThe Simple Economics of Extortion Evidence from Trucking in Acehrdquo (2009) Journal of Political Economy 117 (3) Sanchez De La Sierra Raul and Kristof Titeca ldquoCorrupt Hierarchiesrdquo Working paper (2018) Avis Eric Claudio Ferraz and Frederico Finan ldquoDo Government Audits Reduce Corruption Estimating the Impacts of Exposing Corrupt Politiciansrdquo (2018) Journal of Political Economy 1265 Colonnelli Emanuele and Mounu Prem ldquoCorruption and Firms Evidence from Randomized Audits in Brazilrdquo Working Paper (2017) Svensson Jakob ldquoWho must pay bribes and how much Evidence from a cross section of firmsrdquo (2003) The Quarterly Journal of Economics 118 Olken Ben ldquoCorruption Perceptions vs Corruption Realityrdquo (2009) Journal of Public Economics 93 (7-8) 8B ndash 10B A primary goal of this course is a critical reading of the current literature on the empirical microeconomics of firms and contracting issues in development economics I expect you to do all of the required reading and to participate in class discussion

DRAFT

I would like to cover 8-9 papers in our three 3-hour meetings The format will be as follows We will have in-class presentation for all the sessions we meet Students will each present one paper and lead a class discussion All other students are required to prepare 5 minutes of comments on the paper in the form of 3 slides one each on bull strengths of the paper bull weaknesses of the paper bull ideas for follow-on work In class one student will be randomly selected to present his or her comments The presentation will be 25 to 30 minutes and then there will be 5 minutes of discussant comments and 10 minutes of general discussion You should present one of the papers on the syllabus marked with an astrik [TBD] The papers discussed in student presentations are required reading for all students Week 8 ndash Management amp Firm Performance [Ameet] - Papers Bloom and Van Reenan papers and various papers that build from this literature Week 9 ndash Empirical Contracting paper in Development Economics [ Ameet] - Macchiavello amp Morjaria (2 papers) + other prior papers that initially started this agenda Week 10 ndash Job Market Papers of 2019 in FirmsContracting in Developing Countries [Ameet]

DRAFT

Page 2: DRAFT - kellogg.northwestern.edu … · Poor economics: A radical rethinking of the way to fight global poverty. New York: Public Affairs. Deaton, A. (2013). The Great Escape: health,

Banerjee A Duflo E (2011) Poor economics A radical rethinking of the way to fight global poverty New York Public Affairs Deaton A (2013) The Great Escape health wealth and the origins of inequality Princeton Princeton University Press Syllabus (Subject to Change) April 1 2019 Week 1 Lecture 1A Introductory Lecture [Nancy Edoardo and Ameet] What is development Why is it important to study firms political economy and long-run development The four pillars of development demographics human capital institutions and culture Lecture 1A ldquoInstitutionsrdquo matter and persist Eduardo Acemoglu D Johnson S Robinson J (2001) Reversal of Fortune Geography and Institutions in the Making of the Modern World Income Distribution Quarterly Journal of Economics 117

1231-1294 Acemoglu D Johnson S Robinson J (2001) The Colonial Origins of Comparative Development An

Empirical Investigation American Economic Review 91 1369-1401 Jones B Olken B (2005) Do Leaders Matter National Leadership and Growth Since World War II Quarterly Journal of Economics 120 835-864 Easterly W Levine R (1997) Africas Growth Tragedy Policies and Ethnic Divisions The Quarterly Journal of Economics 112 1203-1250 La Porta R Lopez-de-Silanes F Shleifer A Vishny R (1998) Law and Finance Journal of Political Economy 106 1113-1155 Banerjee A Iyer L (2005) History Institutions and Economic Performance The Legacy of Colonial Land Tenure Systems in India American Economic Review 95 1190-1213

Piketty T (2003) Income Inequality in France 1901ndash1998 The Journal of Political Economy 1115 1004-1042

Mario Dell M (2010) The Persistent Effects of Perus Mining Mita Econometrica 78(6) 1863-1903 Bleakely H Lin J (2012) Portage and Path Dependence Quarterly Journal of Economics 127 587-644 Lecture 1B Where do institutions come from

DRAFT

Acemoglu D Johnson S Robinson J Yared P (2008)Income and Democracy American Economic

Review 98(3) 808-842 Jimmy Acemoglu D Robinson J (2000) Why Did the West Extend the Franchise Growth Inequality and Democracy in Historical Perspective Quarterly Journal of Economics 15 1167-1199 Martinez-Bravo M Gerard P Qian N Yang Y (2017) The Rise and Fall of Local Elections in China NBER Working Paper Lecture 2A Culture Matters and Persists Jose Algan Y Cahuc P (2010) Inherited Trust and Growth American Economic Review 100 (5) 2060-2092 Kensuke Grosjean P Khattar R (2018) Itrsquos Raining Men Hallelujah The Long-Run Consequences of Male-Biased Sex Ratios Review of Economic Studies Forthcoming Fernandez R (2010) Does culture matter Benhabib J Jackson M Bisin A Handbook of Social Economics Vol 1A Amsterdam North-Holland Publishing Fernandez R Fogli A (2009) Culture An Empirical Investigation of Beliefs Work and Fertility American Economic Journal Macroeconomics 1 146-177 Guiso L SapienzaP Zingales L (2006) Does Culture Affect Economic Outcomes Journal of Economic Perspectives 20 23-48 Guiso Luigi Paola Sapienza and Luigi Zingales (2009) ldquoCultural Biases in Economic Exchangerdquo Quarterly Journal of Economics 124 1095-1131 Algan Y Cahuc P (2013) Trust and Growth Annual Review of Economics 5 521-549 Grosfeld I Rodnyansky A Zhuravskaya E (2013) Persistent Anti-Market Culture A Legacy of the Pale of Settlement after the Holocaust American Economic Journal Economic policy 5(3) 189-226 Lecture 2B The Origins of Cultural Norms Jingpu Nunn N Wantchekon L (2011) The Slave Trade and the Origins of Mistrust in Africa American Economic Review 1017 3221-3252 Siddarth Lowes S Montero E (2019) The Legacy of Colonial Medicine in Central Africa University of Bocconi Working Paper Alsan M Wanamaker M (2017 ) Tuskegee and the Health of Black Men Quarterly Journal of Economics 133(1) 407-455 Lecture 3A The Relationship Between Cultural Norms and Formal Institutions

DRAFT

Reem Nunn N Qian N Wen J (2017) Trust Growth and Political Turnover Northwestern Working Paper

Jimmy Martinez-Bravodagger M Padro I MiguelDagger G Qian1113088 N Xu Y Yao Y (2017) Making Democracy Work Formal Institutions and Culture in Rural China NBER working paper Putnam R Leonardi R Nanetti R (1993) Making Democracy Work Civic Traditions in Modern Italy Princeton NJ Princeton University Press

Lecture 3B Administrative Capacity

Besley T Persson T (2010) State Capacity Conflict and Development Econometrica Econometric Society vol 78(1) 1-34 Matteo Besley T Persson T (2009)The Origins of State Capacity Property Rights Taxation and Politics American Economic Review American Economic Association 99(4) 1218-1244 Gennaioli N Voth H (2013) State Capacity and Military Conflict Review of Economic Studies 82(4) 1409-1448 Eduardo Meng X Qian N Yared P (2015) Chinarsquos Great Famine 1959-61 The Review of Economic Studies 82(4) 1568-1611 Lecture 4A Identity Jose Nix E Qian N (2015) The Fluidity of Race Passing in the United States 1860-1940 NBER Working Paper Cassan G (2015) Identity Based Policies and Identity Manipulation Evidence from Colonial Punjab American Economic Journal Economic Policy 7(4) 103-131 Kensuke Jia R Persson T (2017) Individual vs Social Motives in Identity Choice Theory and Evidence from China UCSD Working Paper Lecture 4B Immigration and Long-run Cultural Change

Jingpu Sequeira S Nunn N Qian N (2017) The Making of America The long-run effect of immigration in the United States NBER Working Paper

Mario Tabellini M (2018) Gifts of the Immigrants Woes of the Natives Lessons from the Age of Mass Migration Harvard Business School Working Paper

DRAFT

Lecture 5A Human capital from a macro and long-run perspective Reem Lagakos D Moll B Porzio T Qian N Schoellman T (2018) Life-Cycle Wage Growth Across Countries Journal of Political Economy 126(2) 797-849 Jimmy Nunn N Qian N (2011) The Potatos Contribution to Population and Urbanization Evidence from a Historical Experiment Quarterly Journal of Economics 126 (2) 593-650 Lecture 5B Conflict Satyanath S Sergenti E (2004) Economic Shocks and Civil Conflict An Instrumental Variables Approach Journal of Political Economy 112(4) 725-753 Matteo Dube O Varga J (2013) Commodity Price Shocks and Civil Conflict Evidence from Colombia Review of Economic Studies 80(4) 1384-1421 Siddarth Nunn N Qian N (2014) US Food Aid and Civil Conflict American Economic Review 104(6) 1630-1666 Crost B Felter J Johnston P (2014) Aid under Fire Development Projects and Civil Conflict American Economic Review 104(6) 1833-1856 Dell M (2015) Trafficking Networks and the Mexican Drug War American Economic Review 105(6) 1738-1779 Abadie A Garbeazabal J (2003) The Economic Costs of Conflict A Case Study of the Basque Country American Economic Review 93(1) 113-132 Caselli F Morelli M Rohner D (2015) The Geography of Interstate Resource Wars The Quarterly Journal of Economics 130(1) 267-315 Collier P Hoffler A (1998) On economic causes of civil war Oxford Economic Papers 50 563-573 Fearon J Laitin D (2003) Ethnicity Insurgency and Civil War American Political Science Review 97(1) 75-90 Blattman C Miguel E (2010) Civil War The Journal of Economic Literature 48(1) 3-57 Qian N (2015) Making Progress on Foreign Aid Annual Review of Economics 7 277-308 Nunn N Qian N (2010) The Determinants of Food Aid Provisions to Africa and the Developing World NBER Working Papers 16610 National Bureau of Economic Research Inc Lecture 6A Political Accountability and Political Selection [Edoardo]

Besley Timothy and Robin Burgess ldquoThe Political Economy of Government Responsiveness Theory and Evidence from Indiardquo The Quarterly Journal of Economics Vol 117 No 4 (Nov 2002) pp 1415-

DRAFT

1451 Dal Bo Ernesto and Frederico Finan ldquoProgress and Perspectives in the Study of Political Selectionrdquo Annual Review of Economics (2018)

Fujiwara Thomas ldquoVoting Technology Political Responsiveness and Infant Health Evidence from Brazilrdquo (2015) Econometrica 832 Casey Katherine ldquoCrossing Party Lines The Effects of Information on Redistributive Politicsrdquo (2015) American Economic Review 1058 Munshi Kaivan and Mark Rosenzweig ldquoEthnic Diversity and the Under-Supply of Local Public Goodsrdquo Working paper (2018) Banerjee Abhijit Rema Hanna Jordan Kyle Ben Olken and Sudarno Sumarto ldquoTangible Information and Citizen Empowerment Identification Cards and Food Subsidy Programs in Indonesiardquo Journal of Political Economy (2018) 1262 Bidwell Kelly Katherine Casey and Rachel Glennerster ldquordquoDebates Voting and Expenditure Responses to Political Communicationrdquo Working paper (2018) Finan Frederico and Laura Schechter ldquoVote-Buying and Reciprocityrdquo (2012) Econometrica 802

Lecture 6B Selection and incentives of bureaucrats and frontline public service providers [Edoardo]

Finan Frederico Benjamin A Olken and Rohini Pande The personnel economics of the state No w21825 National Bureau of Economic Research 2015 Dal Boacute Ernesto Frederico Finan and Martiacuten A Rossi Strengthening state capabilities The role of financial incentives in the call to public service The Quarterly Journal of Economics1283 (2013) 1169-1218 Ashraf Nava Oriana Bandiera and Scott S Lee Do-gooders and go-getters career incentives selection and performance in public service delivery Working Paper (2016) Deserranno Erika Incentives as signal Experimental evidence from the recruitment of village health promoters Working Paper (2016) Hoffman Mitchell Lisa B Kahn and Danielle Li Discretion in hiring The Quarterly Journal of Economics 1332 (2017) 765-800 Rasul Imran and Daniel Rogger The impact of ethnic diversity in bureaucracies Evidence from the Nigerian civil service The American Economic Review PampP 1055 (2015) 457

Colonnelli Emanuele Mounu Prem and Edoardo Teso ldquoPatronage and Selection in public Sector Organizationsrdquo Working paper (2018)

DRAFT

Bertrand Marienne Robin Burgess Arunish Chawla and Guo Xu The Glittering Prizes Career Incentives and Bureaucrat Performance Working paper (2017) Girum Abebe Stefano Caria Esteban Ortiz-Ospina ldquoThe Selection of Talent Experimental and Structural Evidence from Ethiopiardquo Working Paper (2018) Akhtari Mitra Diana Moreira and Laura Trucco ldquoPolitical Turnover Bureaucratic Turnover and the Quality of Public Servicesrdquo Working paper (2017)

Lecture 7A and 7B Corruption [Edoardo]

Banerjee Abhijit Rema Hanna and Sendhil Mullainathan ldquoCorruptionrdquo (2013) Handbook of Organizational Economics Olken Ben and Rohini Pande ldquoCorruption in Developing Countriesrdquo (2012) Annual Review of Economics Shleifer Andrei and Robert Vishny ldquoCorruptionrdquo (1993) Quarterly Journal of Economics Olken Ben ldquoMonitoring Corruption Evidence from a Field Experiment in Indonesiardquo (2007) Journal of Political Economy 115 (2) Olken Ben and Patrick Barron ldquoThe Simple Economics of Extortion Evidence from Trucking in Acehrdquo (2009) Journal of Political Economy 117 (3) Sanchez De La Sierra Raul and Kristof Titeca ldquoCorrupt Hierarchiesrdquo Working paper (2018) Avis Eric Claudio Ferraz and Frederico Finan ldquoDo Government Audits Reduce Corruption Estimating the Impacts of Exposing Corrupt Politiciansrdquo (2018) Journal of Political Economy 1265 Colonnelli Emanuele and Mounu Prem ldquoCorruption and Firms Evidence from Randomized Audits in Brazilrdquo Working Paper (2017) Svensson Jakob ldquoWho must pay bribes and how much Evidence from a cross section of firmsrdquo (2003) The Quarterly Journal of Economics 118 Olken Ben ldquoCorruption Perceptions vs Corruption Realityrdquo (2009) Journal of Public Economics 93 (7-8) 8B ndash 10B A primary goal of this course is a critical reading of the current literature on the empirical microeconomics of firms and contracting issues in development economics I expect you to do all of the required reading and to participate in class discussion

DRAFT

I would like to cover 8-9 papers in our three 3-hour meetings The format will be as follows We will have in-class presentation for all the sessions we meet Students will each present one paper and lead a class discussion All other students are required to prepare 5 minutes of comments on the paper in the form of 3 slides one each on bull strengths of the paper bull weaknesses of the paper bull ideas for follow-on work In class one student will be randomly selected to present his or her comments The presentation will be 25 to 30 minutes and then there will be 5 minutes of discussant comments and 10 minutes of general discussion You should present one of the papers on the syllabus marked with an astrik [TBD] The papers discussed in student presentations are required reading for all students Week 8 ndash Management amp Firm Performance [Ameet] - Papers Bloom and Van Reenan papers and various papers that build from this literature Week 9 ndash Empirical Contracting paper in Development Economics [ Ameet] - Macchiavello amp Morjaria (2 papers) + other prior papers that initially started this agenda Week 10 ndash Job Market Papers of 2019 in FirmsContracting in Developing Countries [Ameet]

DRAFT

Page 3: DRAFT - kellogg.northwestern.edu … · Poor economics: A radical rethinking of the way to fight global poverty. New York: Public Affairs. Deaton, A. (2013). The Great Escape: health,

Acemoglu D Johnson S Robinson J Yared P (2008)Income and Democracy American Economic

Review 98(3) 808-842 Jimmy Acemoglu D Robinson J (2000) Why Did the West Extend the Franchise Growth Inequality and Democracy in Historical Perspective Quarterly Journal of Economics 15 1167-1199 Martinez-Bravo M Gerard P Qian N Yang Y (2017) The Rise and Fall of Local Elections in China NBER Working Paper Lecture 2A Culture Matters and Persists Jose Algan Y Cahuc P (2010) Inherited Trust and Growth American Economic Review 100 (5) 2060-2092 Kensuke Grosjean P Khattar R (2018) Itrsquos Raining Men Hallelujah The Long-Run Consequences of Male-Biased Sex Ratios Review of Economic Studies Forthcoming Fernandez R (2010) Does culture matter Benhabib J Jackson M Bisin A Handbook of Social Economics Vol 1A Amsterdam North-Holland Publishing Fernandez R Fogli A (2009) Culture An Empirical Investigation of Beliefs Work and Fertility American Economic Journal Macroeconomics 1 146-177 Guiso L SapienzaP Zingales L (2006) Does Culture Affect Economic Outcomes Journal of Economic Perspectives 20 23-48 Guiso Luigi Paola Sapienza and Luigi Zingales (2009) ldquoCultural Biases in Economic Exchangerdquo Quarterly Journal of Economics 124 1095-1131 Algan Y Cahuc P (2013) Trust and Growth Annual Review of Economics 5 521-549 Grosfeld I Rodnyansky A Zhuravskaya E (2013) Persistent Anti-Market Culture A Legacy of the Pale of Settlement after the Holocaust American Economic Journal Economic policy 5(3) 189-226 Lecture 2B The Origins of Cultural Norms Jingpu Nunn N Wantchekon L (2011) The Slave Trade and the Origins of Mistrust in Africa American Economic Review 1017 3221-3252 Siddarth Lowes S Montero E (2019) The Legacy of Colonial Medicine in Central Africa University of Bocconi Working Paper Alsan M Wanamaker M (2017 ) Tuskegee and the Health of Black Men Quarterly Journal of Economics 133(1) 407-455 Lecture 3A The Relationship Between Cultural Norms and Formal Institutions

DRAFT

Reem Nunn N Qian N Wen J (2017) Trust Growth and Political Turnover Northwestern Working Paper

Jimmy Martinez-Bravodagger M Padro I MiguelDagger G Qian1113088 N Xu Y Yao Y (2017) Making Democracy Work Formal Institutions and Culture in Rural China NBER working paper Putnam R Leonardi R Nanetti R (1993) Making Democracy Work Civic Traditions in Modern Italy Princeton NJ Princeton University Press

Lecture 3B Administrative Capacity

Besley T Persson T (2010) State Capacity Conflict and Development Econometrica Econometric Society vol 78(1) 1-34 Matteo Besley T Persson T (2009)The Origins of State Capacity Property Rights Taxation and Politics American Economic Review American Economic Association 99(4) 1218-1244 Gennaioli N Voth H (2013) State Capacity and Military Conflict Review of Economic Studies 82(4) 1409-1448 Eduardo Meng X Qian N Yared P (2015) Chinarsquos Great Famine 1959-61 The Review of Economic Studies 82(4) 1568-1611 Lecture 4A Identity Jose Nix E Qian N (2015) The Fluidity of Race Passing in the United States 1860-1940 NBER Working Paper Cassan G (2015) Identity Based Policies and Identity Manipulation Evidence from Colonial Punjab American Economic Journal Economic Policy 7(4) 103-131 Kensuke Jia R Persson T (2017) Individual vs Social Motives in Identity Choice Theory and Evidence from China UCSD Working Paper Lecture 4B Immigration and Long-run Cultural Change

Jingpu Sequeira S Nunn N Qian N (2017) The Making of America The long-run effect of immigration in the United States NBER Working Paper

Mario Tabellini M (2018) Gifts of the Immigrants Woes of the Natives Lessons from the Age of Mass Migration Harvard Business School Working Paper

DRAFT

Lecture 5A Human capital from a macro and long-run perspective Reem Lagakos D Moll B Porzio T Qian N Schoellman T (2018) Life-Cycle Wage Growth Across Countries Journal of Political Economy 126(2) 797-849 Jimmy Nunn N Qian N (2011) The Potatos Contribution to Population and Urbanization Evidence from a Historical Experiment Quarterly Journal of Economics 126 (2) 593-650 Lecture 5B Conflict Satyanath S Sergenti E (2004) Economic Shocks and Civil Conflict An Instrumental Variables Approach Journal of Political Economy 112(4) 725-753 Matteo Dube O Varga J (2013) Commodity Price Shocks and Civil Conflict Evidence from Colombia Review of Economic Studies 80(4) 1384-1421 Siddarth Nunn N Qian N (2014) US Food Aid and Civil Conflict American Economic Review 104(6) 1630-1666 Crost B Felter J Johnston P (2014) Aid under Fire Development Projects and Civil Conflict American Economic Review 104(6) 1833-1856 Dell M (2015) Trafficking Networks and the Mexican Drug War American Economic Review 105(6) 1738-1779 Abadie A Garbeazabal J (2003) The Economic Costs of Conflict A Case Study of the Basque Country American Economic Review 93(1) 113-132 Caselli F Morelli M Rohner D (2015) The Geography of Interstate Resource Wars The Quarterly Journal of Economics 130(1) 267-315 Collier P Hoffler A (1998) On economic causes of civil war Oxford Economic Papers 50 563-573 Fearon J Laitin D (2003) Ethnicity Insurgency and Civil War American Political Science Review 97(1) 75-90 Blattman C Miguel E (2010) Civil War The Journal of Economic Literature 48(1) 3-57 Qian N (2015) Making Progress on Foreign Aid Annual Review of Economics 7 277-308 Nunn N Qian N (2010) The Determinants of Food Aid Provisions to Africa and the Developing World NBER Working Papers 16610 National Bureau of Economic Research Inc Lecture 6A Political Accountability and Political Selection [Edoardo]

Besley Timothy and Robin Burgess ldquoThe Political Economy of Government Responsiveness Theory and Evidence from Indiardquo The Quarterly Journal of Economics Vol 117 No 4 (Nov 2002) pp 1415-

DRAFT

1451 Dal Bo Ernesto and Frederico Finan ldquoProgress and Perspectives in the Study of Political Selectionrdquo Annual Review of Economics (2018)

Fujiwara Thomas ldquoVoting Technology Political Responsiveness and Infant Health Evidence from Brazilrdquo (2015) Econometrica 832 Casey Katherine ldquoCrossing Party Lines The Effects of Information on Redistributive Politicsrdquo (2015) American Economic Review 1058 Munshi Kaivan and Mark Rosenzweig ldquoEthnic Diversity and the Under-Supply of Local Public Goodsrdquo Working paper (2018) Banerjee Abhijit Rema Hanna Jordan Kyle Ben Olken and Sudarno Sumarto ldquoTangible Information and Citizen Empowerment Identification Cards and Food Subsidy Programs in Indonesiardquo Journal of Political Economy (2018) 1262 Bidwell Kelly Katherine Casey and Rachel Glennerster ldquordquoDebates Voting and Expenditure Responses to Political Communicationrdquo Working paper (2018) Finan Frederico and Laura Schechter ldquoVote-Buying and Reciprocityrdquo (2012) Econometrica 802

Lecture 6B Selection and incentives of bureaucrats and frontline public service providers [Edoardo]

Finan Frederico Benjamin A Olken and Rohini Pande The personnel economics of the state No w21825 National Bureau of Economic Research 2015 Dal Boacute Ernesto Frederico Finan and Martiacuten A Rossi Strengthening state capabilities The role of financial incentives in the call to public service The Quarterly Journal of Economics1283 (2013) 1169-1218 Ashraf Nava Oriana Bandiera and Scott S Lee Do-gooders and go-getters career incentives selection and performance in public service delivery Working Paper (2016) Deserranno Erika Incentives as signal Experimental evidence from the recruitment of village health promoters Working Paper (2016) Hoffman Mitchell Lisa B Kahn and Danielle Li Discretion in hiring The Quarterly Journal of Economics 1332 (2017) 765-800 Rasul Imran and Daniel Rogger The impact of ethnic diversity in bureaucracies Evidence from the Nigerian civil service The American Economic Review PampP 1055 (2015) 457

Colonnelli Emanuele Mounu Prem and Edoardo Teso ldquoPatronage and Selection in public Sector Organizationsrdquo Working paper (2018)

DRAFT

Bertrand Marienne Robin Burgess Arunish Chawla and Guo Xu The Glittering Prizes Career Incentives and Bureaucrat Performance Working paper (2017) Girum Abebe Stefano Caria Esteban Ortiz-Ospina ldquoThe Selection of Talent Experimental and Structural Evidence from Ethiopiardquo Working Paper (2018) Akhtari Mitra Diana Moreira and Laura Trucco ldquoPolitical Turnover Bureaucratic Turnover and the Quality of Public Servicesrdquo Working paper (2017)

Lecture 7A and 7B Corruption [Edoardo]

Banerjee Abhijit Rema Hanna and Sendhil Mullainathan ldquoCorruptionrdquo (2013) Handbook of Organizational Economics Olken Ben and Rohini Pande ldquoCorruption in Developing Countriesrdquo (2012) Annual Review of Economics Shleifer Andrei and Robert Vishny ldquoCorruptionrdquo (1993) Quarterly Journal of Economics Olken Ben ldquoMonitoring Corruption Evidence from a Field Experiment in Indonesiardquo (2007) Journal of Political Economy 115 (2) Olken Ben and Patrick Barron ldquoThe Simple Economics of Extortion Evidence from Trucking in Acehrdquo (2009) Journal of Political Economy 117 (3) Sanchez De La Sierra Raul and Kristof Titeca ldquoCorrupt Hierarchiesrdquo Working paper (2018) Avis Eric Claudio Ferraz and Frederico Finan ldquoDo Government Audits Reduce Corruption Estimating the Impacts of Exposing Corrupt Politiciansrdquo (2018) Journal of Political Economy 1265 Colonnelli Emanuele and Mounu Prem ldquoCorruption and Firms Evidence from Randomized Audits in Brazilrdquo Working Paper (2017) Svensson Jakob ldquoWho must pay bribes and how much Evidence from a cross section of firmsrdquo (2003) The Quarterly Journal of Economics 118 Olken Ben ldquoCorruption Perceptions vs Corruption Realityrdquo (2009) Journal of Public Economics 93 (7-8) 8B ndash 10B A primary goal of this course is a critical reading of the current literature on the empirical microeconomics of firms and contracting issues in development economics I expect you to do all of the required reading and to participate in class discussion

DRAFT

I would like to cover 8-9 papers in our three 3-hour meetings The format will be as follows We will have in-class presentation for all the sessions we meet Students will each present one paper and lead a class discussion All other students are required to prepare 5 minutes of comments on the paper in the form of 3 slides one each on bull strengths of the paper bull weaknesses of the paper bull ideas for follow-on work In class one student will be randomly selected to present his or her comments The presentation will be 25 to 30 minutes and then there will be 5 minutes of discussant comments and 10 minutes of general discussion You should present one of the papers on the syllabus marked with an astrik [TBD] The papers discussed in student presentations are required reading for all students Week 8 ndash Management amp Firm Performance [Ameet] - Papers Bloom and Van Reenan papers and various papers that build from this literature Week 9 ndash Empirical Contracting paper in Development Economics [ Ameet] - Macchiavello amp Morjaria (2 papers) + other prior papers that initially started this agenda Week 10 ndash Job Market Papers of 2019 in FirmsContracting in Developing Countries [Ameet]

DRAFT

Page 4: DRAFT - kellogg.northwestern.edu … · Poor economics: A radical rethinking of the way to fight global poverty. New York: Public Affairs. Deaton, A. (2013). The Great Escape: health,

Reem Nunn N Qian N Wen J (2017) Trust Growth and Political Turnover Northwestern Working Paper

Jimmy Martinez-Bravodagger M Padro I MiguelDagger G Qian1113088 N Xu Y Yao Y (2017) Making Democracy Work Formal Institutions and Culture in Rural China NBER working paper Putnam R Leonardi R Nanetti R (1993) Making Democracy Work Civic Traditions in Modern Italy Princeton NJ Princeton University Press

Lecture 3B Administrative Capacity

Besley T Persson T (2010) State Capacity Conflict and Development Econometrica Econometric Society vol 78(1) 1-34 Matteo Besley T Persson T (2009)The Origins of State Capacity Property Rights Taxation and Politics American Economic Review American Economic Association 99(4) 1218-1244 Gennaioli N Voth H (2013) State Capacity and Military Conflict Review of Economic Studies 82(4) 1409-1448 Eduardo Meng X Qian N Yared P (2015) Chinarsquos Great Famine 1959-61 The Review of Economic Studies 82(4) 1568-1611 Lecture 4A Identity Jose Nix E Qian N (2015) The Fluidity of Race Passing in the United States 1860-1940 NBER Working Paper Cassan G (2015) Identity Based Policies and Identity Manipulation Evidence from Colonial Punjab American Economic Journal Economic Policy 7(4) 103-131 Kensuke Jia R Persson T (2017) Individual vs Social Motives in Identity Choice Theory and Evidence from China UCSD Working Paper Lecture 4B Immigration and Long-run Cultural Change

Jingpu Sequeira S Nunn N Qian N (2017) The Making of America The long-run effect of immigration in the United States NBER Working Paper

Mario Tabellini M (2018) Gifts of the Immigrants Woes of the Natives Lessons from the Age of Mass Migration Harvard Business School Working Paper

DRAFT

Lecture 5A Human capital from a macro and long-run perspective Reem Lagakos D Moll B Porzio T Qian N Schoellman T (2018) Life-Cycle Wage Growth Across Countries Journal of Political Economy 126(2) 797-849 Jimmy Nunn N Qian N (2011) The Potatos Contribution to Population and Urbanization Evidence from a Historical Experiment Quarterly Journal of Economics 126 (2) 593-650 Lecture 5B Conflict Satyanath S Sergenti E (2004) Economic Shocks and Civil Conflict An Instrumental Variables Approach Journal of Political Economy 112(4) 725-753 Matteo Dube O Varga J (2013) Commodity Price Shocks and Civil Conflict Evidence from Colombia Review of Economic Studies 80(4) 1384-1421 Siddarth Nunn N Qian N (2014) US Food Aid and Civil Conflict American Economic Review 104(6) 1630-1666 Crost B Felter J Johnston P (2014) Aid under Fire Development Projects and Civil Conflict American Economic Review 104(6) 1833-1856 Dell M (2015) Trafficking Networks and the Mexican Drug War American Economic Review 105(6) 1738-1779 Abadie A Garbeazabal J (2003) The Economic Costs of Conflict A Case Study of the Basque Country American Economic Review 93(1) 113-132 Caselli F Morelli M Rohner D (2015) The Geography of Interstate Resource Wars The Quarterly Journal of Economics 130(1) 267-315 Collier P Hoffler A (1998) On economic causes of civil war Oxford Economic Papers 50 563-573 Fearon J Laitin D (2003) Ethnicity Insurgency and Civil War American Political Science Review 97(1) 75-90 Blattman C Miguel E (2010) Civil War The Journal of Economic Literature 48(1) 3-57 Qian N (2015) Making Progress on Foreign Aid Annual Review of Economics 7 277-308 Nunn N Qian N (2010) The Determinants of Food Aid Provisions to Africa and the Developing World NBER Working Papers 16610 National Bureau of Economic Research Inc Lecture 6A Political Accountability and Political Selection [Edoardo]

Besley Timothy and Robin Burgess ldquoThe Political Economy of Government Responsiveness Theory and Evidence from Indiardquo The Quarterly Journal of Economics Vol 117 No 4 (Nov 2002) pp 1415-

DRAFT

1451 Dal Bo Ernesto and Frederico Finan ldquoProgress and Perspectives in the Study of Political Selectionrdquo Annual Review of Economics (2018)

Fujiwara Thomas ldquoVoting Technology Political Responsiveness and Infant Health Evidence from Brazilrdquo (2015) Econometrica 832 Casey Katherine ldquoCrossing Party Lines The Effects of Information on Redistributive Politicsrdquo (2015) American Economic Review 1058 Munshi Kaivan and Mark Rosenzweig ldquoEthnic Diversity and the Under-Supply of Local Public Goodsrdquo Working paper (2018) Banerjee Abhijit Rema Hanna Jordan Kyle Ben Olken and Sudarno Sumarto ldquoTangible Information and Citizen Empowerment Identification Cards and Food Subsidy Programs in Indonesiardquo Journal of Political Economy (2018) 1262 Bidwell Kelly Katherine Casey and Rachel Glennerster ldquordquoDebates Voting and Expenditure Responses to Political Communicationrdquo Working paper (2018) Finan Frederico and Laura Schechter ldquoVote-Buying and Reciprocityrdquo (2012) Econometrica 802

Lecture 6B Selection and incentives of bureaucrats and frontline public service providers [Edoardo]

Finan Frederico Benjamin A Olken and Rohini Pande The personnel economics of the state No w21825 National Bureau of Economic Research 2015 Dal Boacute Ernesto Frederico Finan and Martiacuten A Rossi Strengthening state capabilities The role of financial incentives in the call to public service The Quarterly Journal of Economics1283 (2013) 1169-1218 Ashraf Nava Oriana Bandiera and Scott S Lee Do-gooders and go-getters career incentives selection and performance in public service delivery Working Paper (2016) Deserranno Erika Incentives as signal Experimental evidence from the recruitment of village health promoters Working Paper (2016) Hoffman Mitchell Lisa B Kahn and Danielle Li Discretion in hiring The Quarterly Journal of Economics 1332 (2017) 765-800 Rasul Imran and Daniel Rogger The impact of ethnic diversity in bureaucracies Evidence from the Nigerian civil service The American Economic Review PampP 1055 (2015) 457

Colonnelli Emanuele Mounu Prem and Edoardo Teso ldquoPatronage and Selection in public Sector Organizationsrdquo Working paper (2018)

DRAFT

Bertrand Marienne Robin Burgess Arunish Chawla and Guo Xu The Glittering Prizes Career Incentives and Bureaucrat Performance Working paper (2017) Girum Abebe Stefano Caria Esteban Ortiz-Ospina ldquoThe Selection of Talent Experimental and Structural Evidence from Ethiopiardquo Working Paper (2018) Akhtari Mitra Diana Moreira and Laura Trucco ldquoPolitical Turnover Bureaucratic Turnover and the Quality of Public Servicesrdquo Working paper (2017)

Lecture 7A and 7B Corruption [Edoardo]

Banerjee Abhijit Rema Hanna and Sendhil Mullainathan ldquoCorruptionrdquo (2013) Handbook of Organizational Economics Olken Ben and Rohini Pande ldquoCorruption in Developing Countriesrdquo (2012) Annual Review of Economics Shleifer Andrei and Robert Vishny ldquoCorruptionrdquo (1993) Quarterly Journal of Economics Olken Ben ldquoMonitoring Corruption Evidence from a Field Experiment in Indonesiardquo (2007) Journal of Political Economy 115 (2) Olken Ben and Patrick Barron ldquoThe Simple Economics of Extortion Evidence from Trucking in Acehrdquo (2009) Journal of Political Economy 117 (3) Sanchez De La Sierra Raul and Kristof Titeca ldquoCorrupt Hierarchiesrdquo Working paper (2018) Avis Eric Claudio Ferraz and Frederico Finan ldquoDo Government Audits Reduce Corruption Estimating the Impacts of Exposing Corrupt Politiciansrdquo (2018) Journal of Political Economy 1265 Colonnelli Emanuele and Mounu Prem ldquoCorruption and Firms Evidence from Randomized Audits in Brazilrdquo Working Paper (2017) Svensson Jakob ldquoWho must pay bribes and how much Evidence from a cross section of firmsrdquo (2003) The Quarterly Journal of Economics 118 Olken Ben ldquoCorruption Perceptions vs Corruption Realityrdquo (2009) Journal of Public Economics 93 (7-8) 8B ndash 10B A primary goal of this course is a critical reading of the current literature on the empirical microeconomics of firms and contracting issues in development economics I expect you to do all of the required reading and to participate in class discussion

DRAFT

I would like to cover 8-9 papers in our three 3-hour meetings The format will be as follows We will have in-class presentation for all the sessions we meet Students will each present one paper and lead a class discussion All other students are required to prepare 5 minutes of comments on the paper in the form of 3 slides one each on bull strengths of the paper bull weaknesses of the paper bull ideas for follow-on work In class one student will be randomly selected to present his or her comments The presentation will be 25 to 30 minutes and then there will be 5 minutes of discussant comments and 10 minutes of general discussion You should present one of the papers on the syllabus marked with an astrik [TBD] The papers discussed in student presentations are required reading for all students Week 8 ndash Management amp Firm Performance [Ameet] - Papers Bloom and Van Reenan papers and various papers that build from this literature Week 9 ndash Empirical Contracting paper in Development Economics [ Ameet] - Macchiavello amp Morjaria (2 papers) + other prior papers that initially started this agenda Week 10 ndash Job Market Papers of 2019 in FirmsContracting in Developing Countries [Ameet]

DRAFT

Page 5: DRAFT - kellogg.northwestern.edu … · Poor economics: A radical rethinking of the way to fight global poverty. New York: Public Affairs. Deaton, A. (2013). The Great Escape: health,

Lecture 5A Human capital from a macro and long-run perspective Reem Lagakos D Moll B Porzio T Qian N Schoellman T (2018) Life-Cycle Wage Growth Across Countries Journal of Political Economy 126(2) 797-849 Jimmy Nunn N Qian N (2011) The Potatos Contribution to Population and Urbanization Evidence from a Historical Experiment Quarterly Journal of Economics 126 (2) 593-650 Lecture 5B Conflict Satyanath S Sergenti E (2004) Economic Shocks and Civil Conflict An Instrumental Variables Approach Journal of Political Economy 112(4) 725-753 Matteo Dube O Varga J (2013) Commodity Price Shocks and Civil Conflict Evidence from Colombia Review of Economic Studies 80(4) 1384-1421 Siddarth Nunn N Qian N (2014) US Food Aid and Civil Conflict American Economic Review 104(6) 1630-1666 Crost B Felter J Johnston P (2014) Aid under Fire Development Projects and Civil Conflict American Economic Review 104(6) 1833-1856 Dell M (2015) Trafficking Networks and the Mexican Drug War American Economic Review 105(6) 1738-1779 Abadie A Garbeazabal J (2003) The Economic Costs of Conflict A Case Study of the Basque Country American Economic Review 93(1) 113-132 Caselli F Morelli M Rohner D (2015) The Geography of Interstate Resource Wars The Quarterly Journal of Economics 130(1) 267-315 Collier P Hoffler A (1998) On economic causes of civil war Oxford Economic Papers 50 563-573 Fearon J Laitin D (2003) Ethnicity Insurgency and Civil War American Political Science Review 97(1) 75-90 Blattman C Miguel E (2010) Civil War The Journal of Economic Literature 48(1) 3-57 Qian N (2015) Making Progress on Foreign Aid Annual Review of Economics 7 277-308 Nunn N Qian N (2010) The Determinants of Food Aid Provisions to Africa and the Developing World NBER Working Papers 16610 National Bureau of Economic Research Inc Lecture 6A Political Accountability and Political Selection [Edoardo]

Besley Timothy and Robin Burgess ldquoThe Political Economy of Government Responsiveness Theory and Evidence from Indiardquo The Quarterly Journal of Economics Vol 117 No 4 (Nov 2002) pp 1415-

DRAFT

1451 Dal Bo Ernesto and Frederico Finan ldquoProgress and Perspectives in the Study of Political Selectionrdquo Annual Review of Economics (2018)

Fujiwara Thomas ldquoVoting Technology Political Responsiveness and Infant Health Evidence from Brazilrdquo (2015) Econometrica 832 Casey Katherine ldquoCrossing Party Lines The Effects of Information on Redistributive Politicsrdquo (2015) American Economic Review 1058 Munshi Kaivan and Mark Rosenzweig ldquoEthnic Diversity and the Under-Supply of Local Public Goodsrdquo Working paper (2018) Banerjee Abhijit Rema Hanna Jordan Kyle Ben Olken and Sudarno Sumarto ldquoTangible Information and Citizen Empowerment Identification Cards and Food Subsidy Programs in Indonesiardquo Journal of Political Economy (2018) 1262 Bidwell Kelly Katherine Casey and Rachel Glennerster ldquordquoDebates Voting and Expenditure Responses to Political Communicationrdquo Working paper (2018) Finan Frederico and Laura Schechter ldquoVote-Buying and Reciprocityrdquo (2012) Econometrica 802

Lecture 6B Selection and incentives of bureaucrats and frontline public service providers [Edoardo]

Finan Frederico Benjamin A Olken and Rohini Pande The personnel economics of the state No w21825 National Bureau of Economic Research 2015 Dal Boacute Ernesto Frederico Finan and Martiacuten A Rossi Strengthening state capabilities The role of financial incentives in the call to public service The Quarterly Journal of Economics1283 (2013) 1169-1218 Ashraf Nava Oriana Bandiera and Scott S Lee Do-gooders and go-getters career incentives selection and performance in public service delivery Working Paper (2016) Deserranno Erika Incentives as signal Experimental evidence from the recruitment of village health promoters Working Paper (2016) Hoffman Mitchell Lisa B Kahn and Danielle Li Discretion in hiring The Quarterly Journal of Economics 1332 (2017) 765-800 Rasul Imran and Daniel Rogger The impact of ethnic diversity in bureaucracies Evidence from the Nigerian civil service The American Economic Review PampP 1055 (2015) 457

Colonnelli Emanuele Mounu Prem and Edoardo Teso ldquoPatronage and Selection in public Sector Organizationsrdquo Working paper (2018)

DRAFT

Bertrand Marienne Robin Burgess Arunish Chawla and Guo Xu The Glittering Prizes Career Incentives and Bureaucrat Performance Working paper (2017) Girum Abebe Stefano Caria Esteban Ortiz-Ospina ldquoThe Selection of Talent Experimental and Structural Evidence from Ethiopiardquo Working Paper (2018) Akhtari Mitra Diana Moreira and Laura Trucco ldquoPolitical Turnover Bureaucratic Turnover and the Quality of Public Servicesrdquo Working paper (2017)

Lecture 7A and 7B Corruption [Edoardo]

Banerjee Abhijit Rema Hanna and Sendhil Mullainathan ldquoCorruptionrdquo (2013) Handbook of Organizational Economics Olken Ben and Rohini Pande ldquoCorruption in Developing Countriesrdquo (2012) Annual Review of Economics Shleifer Andrei and Robert Vishny ldquoCorruptionrdquo (1993) Quarterly Journal of Economics Olken Ben ldquoMonitoring Corruption Evidence from a Field Experiment in Indonesiardquo (2007) Journal of Political Economy 115 (2) Olken Ben and Patrick Barron ldquoThe Simple Economics of Extortion Evidence from Trucking in Acehrdquo (2009) Journal of Political Economy 117 (3) Sanchez De La Sierra Raul and Kristof Titeca ldquoCorrupt Hierarchiesrdquo Working paper (2018) Avis Eric Claudio Ferraz and Frederico Finan ldquoDo Government Audits Reduce Corruption Estimating the Impacts of Exposing Corrupt Politiciansrdquo (2018) Journal of Political Economy 1265 Colonnelli Emanuele and Mounu Prem ldquoCorruption and Firms Evidence from Randomized Audits in Brazilrdquo Working Paper (2017) Svensson Jakob ldquoWho must pay bribes and how much Evidence from a cross section of firmsrdquo (2003) The Quarterly Journal of Economics 118 Olken Ben ldquoCorruption Perceptions vs Corruption Realityrdquo (2009) Journal of Public Economics 93 (7-8) 8B ndash 10B A primary goal of this course is a critical reading of the current literature on the empirical microeconomics of firms and contracting issues in development economics I expect you to do all of the required reading and to participate in class discussion

DRAFT

I would like to cover 8-9 papers in our three 3-hour meetings The format will be as follows We will have in-class presentation for all the sessions we meet Students will each present one paper and lead a class discussion All other students are required to prepare 5 minutes of comments on the paper in the form of 3 slides one each on bull strengths of the paper bull weaknesses of the paper bull ideas for follow-on work In class one student will be randomly selected to present his or her comments The presentation will be 25 to 30 minutes and then there will be 5 minutes of discussant comments and 10 minutes of general discussion You should present one of the papers on the syllabus marked with an astrik [TBD] The papers discussed in student presentations are required reading for all students Week 8 ndash Management amp Firm Performance [Ameet] - Papers Bloom and Van Reenan papers and various papers that build from this literature Week 9 ndash Empirical Contracting paper in Development Economics [ Ameet] - Macchiavello amp Morjaria (2 papers) + other prior papers that initially started this agenda Week 10 ndash Job Market Papers of 2019 in FirmsContracting in Developing Countries [Ameet]

DRAFT

Page 6: DRAFT - kellogg.northwestern.edu … · Poor economics: A radical rethinking of the way to fight global poverty. New York: Public Affairs. Deaton, A. (2013). The Great Escape: health,

1451 Dal Bo Ernesto and Frederico Finan ldquoProgress and Perspectives in the Study of Political Selectionrdquo Annual Review of Economics (2018)

Fujiwara Thomas ldquoVoting Technology Political Responsiveness and Infant Health Evidence from Brazilrdquo (2015) Econometrica 832 Casey Katherine ldquoCrossing Party Lines The Effects of Information on Redistributive Politicsrdquo (2015) American Economic Review 1058 Munshi Kaivan and Mark Rosenzweig ldquoEthnic Diversity and the Under-Supply of Local Public Goodsrdquo Working paper (2018) Banerjee Abhijit Rema Hanna Jordan Kyle Ben Olken and Sudarno Sumarto ldquoTangible Information and Citizen Empowerment Identification Cards and Food Subsidy Programs in Indonesiardquo Journal of Political Economy (2018) 1262 Bidwell Kelly Katherine Casey and Rachel Glennerster ldquordquoDebates Voting and Expenditure Responses to Political Communicationrdquo Working paper (2018) Finan Frederico and Laura Schechter ldquoVote-Buying and Reciprocityrdquo (2012) Econometrica 802

Lecture 6B Selection and incentives of bureaucrats and frontline public service providers [Edoardo]

Finan Frederico Benjamin A Olken and Rohini Pande The personnel economics of the state No w21825 National Bureau of Economic Research 2015 Dal Boacute Ernesto Frederico Finan and Martiacuten A Rossi Strengthening state capabilities The role of financial incentives in the call to public service The Quarterly Journal of Economics1283 (2013) 1169-1218 Ashraf Nava Oriana Bandiera and Scott S Lee Do-gooders and go-getters career incentives selection and performance in public service delivery Working Paper (2016) Deserranno Erika Incentives as signal Experimental evidence from the recruitment of village health promoters Working Paper (2016) Hoffman Mitchell Lisa B Kahn and Danielle Li Discretion in hiring The Quarterly Journal of Economics 1332 (2017) 765-800 Rasul Imran and Daniel Rogger The impact of ethnic diversity in bureaucracies Evidence from the Nigerian civil service The American Economic Review PampP 1055 (2015) 457

Colonnelli Emanuele Mounu Prem and Edoardo Teso ldquoPatronage and Selection in public Sector Organizationsrdquo Working paper (2018)

DRAFT

Bertrand Marienne Robin Burgess Arunish Chawla and Guo Xu The Glittering Prizes Career Incentives and Bureaucrat Performance Working paper (2017) Girum Abebe Stefano Caria Esteban Ortiz-Ospina ldquoThe Selection of Talent Experimental and Structural Evidence from Ethiopiardquo Working Paper (2018) Akhtari Mitra Diana Moreira and Laura Trucco ldquoPolitical Turnover Bureaucratic Turnover and the Quality of Public Servicesrdquo Working paper (2017)

Lecture 7A and 7B Corruption [Edoardo]

Banerjee Abhijit Rema Hanna and Sendhil Mullainathan ldquoCorruptionrdquo (2013) Handbook of Organizational Economics Olken Ben and Rohini Pande ldquoCorruption in Developing Countriesrdquo (2012) Annual Review of Economics Shleifer Andrei and Robert Vishny ldquoCorruptionrdquo (1993) Quarterly Journal of Economics Olken Ben ldquoMonitoring Corruption Evidence from a Field Experiment in Indonesiardquo (2007) Journal of Political Economy 115 (2) Olken Ben and Patrick Barron ldquoThe Simple Economics of Extortion Evidence from Trucking in Acehrdquo (2009) Journal of Political Economy 117 (3) Sanchez De La Sierra Raul and Kristof Titeca ldquoCorrupt Hierarchiesrdquo Working paper (2018) Avis Eric Claudio Ferraz and Frederico Finan ldquoDo Government Audits Reduce Corruption Estimating the Impacts of Exposing Corrupt Politiciansrdquo (2018) Journal of Political Economy 1265 Colonnelli Emanuele and Mounu Prem ldquoCorruption and Firms Evidence from Randomized Audits in Brazilrdquo Working Paper (2017) Svensson Jakob ldquoWho must pay bribes and how much Evidence from a cross section of firmsrdquo (2003) The Quarterly Journal of Economics 118 Olken Ben ldquoCorruption Perceptions vs Corruption Realityrdquo (2009) Journal of Public Economics 93 (7-8) 8B ndash 10B A primary goal of this course is a critical reading of the current literature on the empirical microeconomics of firms and contracting issues in development economics I expect you to do all of the required reading and to participate in class discussion

DRAFT

I would like to cover 8-9 papers in our three 3-hour meetings The format will be as follows We will have in-class presentation for all the sessions we meet Students will each present one paper and lead a class discussion All other students are required to prepare 5 minutes of comments on the paper in the form of 3 slides one each on bull strengths of the paper bull weaknesses of the paper bull ideas for follow-on work In class one student will be randomly selected to present his or her comments The presentation will be 25 to 30 minutes and then there will be 5 minutes of discussant comments and 10 minutes of general discussion You should present one of the papers on the syllabus marked with an astrik [TBD] The papers discussed in student presentations are required reading for all students Week 8 ndash Management amp Firm Performance [Ameet] - Papers Bloom and Van Reenan papers and various papers that build from this literature Week 9 ndash Empirical Contracting paper in Development Economics [ Ameet] - Macchiavello amp Morjaria (2 papers) + other prior papers that initially started this agenda Week 10 ndash Job Market Papers of 2019 in FirmsContracting in Developing Countries [Ameet]

DRAFT

Page 7: DRAFT - kellogg.northwestern.edu … · Poor economics: A radical rethinking of the way to fight global poverty. New York: Public Affairs. Deaton, A. (2013). The Great Escape: health,

Bertrand Marienne Robin Burgess Arunish Chawla and Guo Xu The Glittering Prizes Career Incentives and Bureaucrat Performance Working paper (2017) Girum Abebe Stefano Caria Esteban Ortiz-Ospina ldquoThe Selection of Talent Experimental and Structural Evidence from Ethiopiardquo Working Paper (2018) Akhtari Mitra Diana Moreira and Laura Trucco ldquoPolitical Turnover Bureaucratic Turnover and the Quality of Public Servicesrdquo Working paper (2017)

Lecture 7A and 7B Corruption [Edoardo]

Banerjee Abhijit Rema Hanna and Sendhil Mullainathan ldquoCorruptionrdquo (2013) Handbook of Organizational Economics Olken Ben and Rohini Pande ldquoCorruption in Developing Countriesrdquo (2012) Annual Review of Economics Shleifer Andrei and Robert Vishny ldquoCorruptionrdquo (1993) Quarterly Journal of Economics Olken Ben ldquoMonitoring Corruption Evidence from a Field Experiment in Indonesiardquo (2007) Journal of Political Economy 115 (2) Olken Ben and Patrick Barron ldquoThe Simple Economics of Extortion Evidence from Trucking in Acehrdquo (2009) Journal of Political Economy 117 (3) Sanchez De La Sierra Raul and Kristof Titeca ldquoCorrupt Hierarchiesrdquo Working paper (2018) Avis Eric Claudio Ferraz and Frederico Finan ldquoDo Government Audits Reduce Corruption Estimating the Impacts of Exposing Corrupt Politiciansrdquo (2018) Journal of Political Economy 1265 Colonnelli Emanuele and Mounu Prem ldquoCorruption and Firms Evidence from Randomized Audits in Brazilrdquo Working Paper (2017) Svensson Jakob ldquoWho must pay bribes and how much Evidence from a cross section of firmsrdquo (2003) The Quarterly Journal of Economics 118 Olken Ben ldquoCorruption Perceptions vs Corruption Realityrdquo (2009) Journal of Public Economics 93 (7-8) 8B ndash 10B A primary goal of this course is a critical reading of the current literature on the empirical microeconomics of firms and contracting issues in development economics I expect you to do all of the required reading and to participate in class discussion

DRAFT

I would like to cover 8-9 papers in our three 3-hour meetings The format will be as follows We will have in-class presentation for all the sessions we meet Students will each present one paper and lead a class discussion All other students are required to prepare 5 minutes of comments on the paper in the form of 3 slides one each on bull strengths of the paper bull weaknesses of the paper bull ideas for follow-on work In class one student will be randomly selected to present his or her comments The presentation will be 25 to 30 minutes and then there will be 5 minutes of discussant comments and 10 minutes of general discussion You should present one of the papers on the syllabus marked with an astrik [TBD] The papers discussed in student presentations are required reading for all students Week 8 ndash Management amp Firm Performance [Ameet] - Papers Bloom and Van Reenan papers and various papers that build from this literature Week 9 ndash Empirical Contracting paper in Development Economics [ Ameet] - Macchiavello amp Morjaria (2 papers) + other prior papers that initially started this agenda Week 10 ndash Job Market Papers of 2019 in FirmsContracting in Developing Countries [Ameet]

DRAFT

Page 8: DRAFT - kellogg.northwestern.edu … · Poor economics: A radical rethinking of the way to fight global poverty. New York: Public Affairs. Deaton, A. (2013). The Great Escape: health,

I would like to cover 8-9 papers in our three 3-hour meetings The format will be as follows We will have in-class presentation for all the sessions we meet Students will each present one paper and lead a class discussion All other students are required to prepare 5 minutes of comments on the paper in the form of 3 slides one each on bull strengths of the paper bull weaknesses of the paper bull ideas for follow-on work In class one student will be randomly selected to present his or her comments The presentation will be 25 to 30 minutes and then there will be 5 minutes of discussant comments and 10 minutes of general discussion You should present one of the papers on the syllabus marked with an astrik [TBD] The papers discussed in student presentations are required reading for all students Week 8 ndash Management amp Firm Performance [Ameet] - Papers Bloom and Van Reenan papers and various papers that build from this literature Week 9 ndash Empirical Contracting paper in Development Economics [ Ameet] - Macchiavello amp Morjaria (2 papers) + other prior papers that initially started this agenda Week 10 ndash Job Market Papers of 2019 in FirmsContracting in Developing Countries [Ameet]

DRAFT