Department of Agricultural and Resource Economics                                                                                               ARE 251/Econ 270A, Fall 2003
Department of Economics                                                                                                                              Elisabeth Sadoulet and Alain de Janvry
University of California at Berkeley
 
 

MICROECONOMICS OF DEVELOPMENT
List of references for first half-semester

I. Agricultural household models
 

Singh, I., Squire, L., and Strauss, J. (eds.)  Agricultural Household Models.  Chapters 1 and 2.  Baltimore, MD:  The Johns Hopkins University Press, 1986.

Sadoulet, Elisabeth, and de Janvry, Alain.  Quantitative Development Policy Analysis.  Chapter 6.  Baltimore, MD: The Johns Hopkins University Press, 1995.

* Eswaran, M., and Kotwal, A.  "Access to Capital and Agrarian Production Organization."  Economic Journal, Vol. 96 (1986), pp. 482-498. pdf

Empirical Analyses:
Benjamin, D.  "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models." Econometrica, Vol. 60, No. 2 (1992), pp. 287-322.

Jacoby, Hanan.  "Shadow Wages and Peasant Family Labour Supply: An Econometric Application to the Peruvian Sierra."  Review of Economic Studies, Vol. 60 (1993), pp. 903-921.

Dutilly-Diane, Celine, Sadoulet, Elisabeth, and Alain de Janvry. "Household Behavior under Market Failures: How Improved Natural Resource Management in Agriculture Promotes the Livestock Economy in the Sahel". Forthcoming in Journal of African Economies. pdf

* Key, Nigel, Elisabeth Sadoulet, and Alain de Janvry.  "Transactions Costs and Agricultural Household Supply Response", American Journal of Agricultural Economics, Vol. 82, No. 2, (May 2000), pp 245-59. pdf

* Bowlus, Audra J. and Terry Sicular, "Moving toward markets? Labor allocation in rural China," Journal of Development Economics, Vol. 71, No. 2 (2003),  pp. 561-583 pdf


II.  Risk coping and risk management under imperfect credit and insurance markets

Fafchamps, Marcel.. "Rural Poverty, Risk, and Development", written for FAO, October 1999. available at  link http://www.economics.ox.ac.uk/members/marcel.fafchamps/homepage/

* Dercon, Stefan. "Risk and Poverty: a Selective Review of the Issues", 2003, available at:  link

2.1. Vulnerability to shocks and consequences
Jacoby, Hanan, and E. Skoufias.  "Risk, Financial Markets and Human Capital in a Developing Country."  Review of Economic Studies, Vol. 64, N. 3, (1997), pp. 311-335.

Glewwe, Paul and Gillette Hall. "Are some groups more vulnerable to macroeconomic shocks than others? Hypothesis tests based on panel data from Peru." Journal of Development Economics, Vol. 56, No. 1 (1998), pp.181-206 pdf

Dercon, Stefan. "Growth and Shocks: Evidence from Rural Ethiopia" 2002, available at:  link

Hoddinott J., and B. Kinsey. "Child Growth in the Time of Drought" Oxford Bulletin of Economics and Statistics, 63(4) (2001) pp: 409-436. pdf

Alderman, H., J. Hoddinott, and B. Kinsey. "Long-term consequences of early childhood malnutrition" mimeo. Department of Economics, Dalhousie University, Halifax, Canada. pdf

Gertler, Paul, and Jonathan Gruber. "Insuring Consumption Against Illness"  American  Economic Review , March 2002, pp.51-70.

Jensen, Robert.  "Agricultural Volatility and Investments in Children." American  Economic Review, Vol. 90, No. 2 (May 2000), pp. 399-404 pdf

2.1  Risk coping and consumption smoothing:
* Deaton, Angus. The Analysis of Household Surveys. Johns Hopkins University Press, 1997. Chap. 6.

 Besley, T.  1995.  ėSavings, credit and insurance.î  In Behrman, J. and T.N. Srinivasan, eds., Handbook of Development Economics.  Vol. 3.  Amsterdam: North-Holland.

   Consumption smoothing:
 Townsend, Robert. ėRisk and Insurance in Village India.î Econometrica, May 1994, 62(3), pp. 539-91

* Jalan, Jyotsna and Martin Ravallion. "Are the poor less well insured? Evidence on vulnerability to income risk in rural China." Journal of Development Economics, Vol. 58, No. 1 (1999), pp. 61-81 link

Behrman, Jere; Andrew Foster et Mark Rosenzweig. 1997. "The dynamics of agricultural production and the calorie-income relationship: Evidence from Pakistan." Journal of Econometrics, Vol.77, No.1, pp. 187-207.

  Savings:
Alderman, H.  1996.  "Saving and economic shocks in rural Pakistan."  Journal of Development Economics, 51, pp. 343-365. link

Czukas, K., M.. Fafchamps, and C. Udry. "Drought and Savings in West Africa: Are Livestock a Buffer Stock?î Journal of Development Economics, April 1998 link

  Informal insurance:
* Fafchamps, Marcel and Susan Lund. "Risk-sharing networks in rural Philippines" Journal of Development Economics, Vol. 71, No. 2 (2003), pp. 261-287 link

Udry, C.  1994.  ėRisk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern Nigeria.î  Review of Economic Studies, 61(3), pp. 495-526.

Murgai, Rinku, Paul Winters, Elisabeth Sadoulet, and Alain de Janvry. ėLocalized and Incomplete Mutual Insurance." Journal of Development Economics, 67(2):245-274 (2002) link

Goldstein, Markus, Alain de Janvry, and Elisabeth Sadoulet" Is a Friend in Need a Friend Indeed? ", June 2003 , forthcoming in Stephan Dercon (ed.) Insurance against Poverty , Oxford University Press.
 

2.2.  Producer behavior and risk management:
Fafchamps, M.  "Cash Crop Production, Food Price Volatility, and Rural Market Integration in the Third World."  American J. of Agricultural Economics, Vol. 74, No. 1 (1992), pp. 90-99.

* Finkelshtain, Israel, and Chalfant, James A.  "Marketed Surplus Under Risk:  Do Peasants Agree with Sandmo?"   American J. of Agricultural Economics, Vol. 73, No. 3 (1991), pp. 557-567.

Kurosaki, Takashi  et Marcel Fafchamps.  "Insurance Market Efficiency and Crop Choices in Pakistan", Journal of Development Economics, 67(2): 419-53, April 2002 link

Binswanger, H. and M. Rosenzweig.  1993.  ėWealth, weather risk and the composition and profitability of agricultural investments.î  Economic Journal.  103: 56-78.

Rosenzweig, M. and K. I. Wolpin.  1993.  ėCredit market constraints, consumption smoothing, and the accumulation of durable production assets in low-income countries: investment in bullocks in India.î  Journal of Political Economy, 101(2), pp. 223-244.

Fafchamps, Marcel et John Pender. "Precautionary Saving, Credit Constraints, and Irreversible Investment: Theory and Evidence from Semi-arid India." Journal of Business and Economic Statistics, 1997 Avril, V15 N2:180-194.

* Kochar, Anjini.  1999.  "Smoothing Consumption by Smoothing Income: Hours of Work Responses to Idiosyncratic Agricultural Shocks in Rural India," Review of Economics and Statistics, 81: 50-61 pdf

Cameron,Lisa A. and Christopher Worswick. ėThe Labor Market as a Smoothing Device: Labor Supply Responses to Crop Loss,î Review of Development Economics, May 2003, 7: 327-341
 

III  Migration and Transfers

  Migration decision

 Tunali I.  "Migration and Remigration of Male Household Heads in Turkey, 1963-1973."  Economic Development and Cultural Change, 1996 Oct, V45 N1:31-67.

 Taylor, J.E.  "Differential Migration, Networks, Information and Risk".  In O. Stark (ed.) Migration, Human Capital, and Development, 1986.  Greenwich, CT: JAI Press: 147-71.

 Stark O; Taylor J.E.  "Relative Deprivation and International Migration".  Demography, 198, V26 N1:1-14.  Reprinted as Chapter 9 in Stark, O., 1991.

 Davis B. Winters P. Gender, Networks and Mexico-US Migration. The Journal of Development Studies. 38(2):1-26, 2001 Dec

  Transfers:
 Cox, Donald, Zekeriya Eser and Emmanuel Jimenez.  "Motives for private transfers over the life cycle: An analytical framework and evidence for Peru." Journal of Development Economics, Vol. 55, No. 1 (1998), pp. 57-80

 Hayashi, F., J. Altonji, and L. Summers.  1996.  ėRisk-Sharing Between and Within Families.î  Econometrica, 64 (2): 261-294.

 Stark, Oded, and Lucas, Robert E. B.  "Migration, Remittances, and the Family."  Economic Development and Cultural Change, Vol. 36, No. 3 (1988), pp. 465-82.  Reprinted as Chapter 15 in Stark, O., 1991.

* Barham, Bradford, and Stephen Boucher.  ėMigration, Inequality:  Estimating the Net Effects of Migration on Income Distribution.î Journal of Development Economics, Vol. 46, No. 2 (1999), pp. 485-512

 Ilahi, Nadeem and Saqib Jafarey.  "Guestworker migration, remittances and the extended family: evidence from Pakistan." Journal of Development Economics, Vol. 46, No. 2 (1999), pp.485-512
 

IV.  Rural Financial Institutions

Theory and Models of particular institutions

Ghatak, M; Guinnane, TW. "The economics of lending with joint liability: theory and practice." Journal of Development Economic 1999 OCT, V60 N1:195-228.

Ghatak, M. "Screening by the Company you Keep: Joint Liability Lending and the Peer Selection Effect.î The Economic Journal, UL, 2000, V110, N.465 (July 2000):601-631. link

Sadoulet, Loic.  " "Equilibrium Risk-Matching in Group Lending", mimeo ECARES, Brussels, http://homepages.ulb.ac.be/~sadoulet/

Sadoulet, Loic and Seth Carpenter.  "Endogenous Matching and Risk Heterogeneity: Evidence on Microcredit Group Formation in Guatemala", mimeo ECARES, Brussels, http://homepages.ulb.ac.be/~sadoulet/

Besley, Timothy, Coate, Stephen, and Loury, Glenn.  "The Economics of Rotating Savings and Credit Associations."  American Economic Review, Vol. 83, No. 4 (1993), pp. 792-810.

Banerjee A. V., Besley, T., and Guinnane, T. W.  "Thy Neighbor's Keeper - The Design of a Credit Cooperative with Theory and a Test."  Quarterly Journal of Economics, Vol. 109, No. 2 (May, 1994), pp. 491-515.

Besley, Timothy, and Coate, Stephen.  "Group Lending, Repayment Incentives, and Social Collateral."   Journal of Development Economics, Vol. 46, No. 1 (1995), pp. 1-18.

Armendáriz de Aghion, Beatriz.  ėOn the Design of a Credit Agreement with Peer Monitoring.î Journal of Development Economics, 1999 OCT, V60 N1:79-104.

Conning, J. ėOutreach, sustainability and leverage in monitored and peer-monitored lending.î Journal of Development Economics, 1999 Oct, V60 N1:51-77

Laffont, Jean-Jacques.  ėCollusion and group lending with adverse selection,î Journal of Development Economics Volume 70, Issue 2, Pages 263-562 (April 2003)  Pages 329-348

Rai, Ashok, and Tomas Sjöström.  "Is Grameen Lending Efficient?" Harvard University, Center for International Development WP N.40, July 2000.
 http://www.cid.harvard.edu/cidwp/040.pdf.

Empirical work
Pitt, Mark, and Shahidur Khandker.  " The Impact of Group Based Credit Progams on Poor Households in Bangladesh:  Does the Gender of Participants Matter?"  Journal  of Political Economy, 1998, Vol.106 No. 5, pp. 958-996 link

Morduch, Jonathan.  "Does Microfinance Really Help the Poor?  New Evidence from Flagship Programs in Bangladesh".  mimeo, June 1998.

Coleman, Brett E.  "The impact of group lending in Northeast Thailand" Journal of Development Economics, 1999 Oct, V60 N1:105-141

Amin, Sajeda , Ashok S. Rai and Giorgio Topa.  ėDoes microcredit reach the poor and vulnerable? Evidence from northern Bangladesh,î Journal of Development Economics Volume 70, Issue 1, (February 2003) Pages 59-82 link

McIntosh, Craig, Alain de Janvry, and Elisabeth Sadoulet. "How Rising Competition among Microfinance Lenders Affect Incumbent Village Bank", June 2003. link
 


V.  Local governance

Cooperation in the management of common property resources
 

 Baland, Jean-Marie and Jean-Philippe Platteau.  1996.  Halting Degradation of Natural Resources:  Is There a Role for Rural Communities?  Cambridge University Press.  Chapter 5. scanned file (18MB) and in three pieces: part 1, part 2, part 3

McCarthy, Nancy, Elisabeth Sadoulet, and Alain de Janvry. 2001.  "Common Pool Resource Appropriation under Costly Cooperation". Journal of Environmental Economics and Management, 42: 297-309. link

 Lopéz, Ramón. 1998.  ėThe Tragedy of the Commons in Côte díIvoire Agriculture: Empirical Evidence and Implications for Evaluating Trade Policiesî.  The World Bank Economic Review 12(1): 105-31.

 Varughese, G, and E. Ostrom.  2001.  ėThe Contested Role of Heterogeneity in Collective Action: Some Evidence from Community Forestry in Nepalî. World Development 29(5): 747-766.

 Dayton-Johnson, Jeff. 2000. ėDeterminants of Collective Action on the Local Commons: A Model with Evidence from Mexicoî, Journal of Development Economics 62: 181-208.

 Baland, Jean-Marie and Jean-Philippe Platteau. 1997.  ėWealth Inequality and Efficiency in the Comons: Part I: The Unregulated Caseî. Oxford Economic Papers 49(4): 451-83.

 Bardhan, Pranab. 2000.  ėIrrigation and Cooperation:  An Empirical Analysis of 48 Irrigation Communities in South Indiaî. Economic Development and Cultural Change 48(4): 847-66.

de Janvry, Alain, Céline Dutilly, Carlos Muñoz-Piña, and Elisabeth  Sadoulet.  2001.  ėLiberal Reforms and Community Responses in Mexicoî.  In Masahiko Aoki, Douglas North, and Yujiro Hayami, eds. Community and Market in Economic Development.  Oxford University Press.

Beck, Tony, and Cathy Nesmith. 2001.  ėBuilding on Poor Peopleís Capacities: The Case of Common Property Resources in India and West Africaî. World Development 29(1): 119-133.

Abraham, Anita, and Jean-Philippe Platteau. 2001. «Participatory Development in the Presence of Endogenous Community Imperfectionsî, Department of Economics and CRED, University of Namur.

 Stevenson, Glenn.  1991.  Common Property Economics:  A General Theory and Land Use Applications.  Cambridge University Press.  Appendix to Chapter 2 and Chapter 3.

Cardenas, Juan-Camilo. ėReal wealth and experimental cooperation: experiments in the field lab,î Journal of Development Economics 70(2), (April 2003) pp.  263-289

Decentralisation
A.D. Foster and M. R. Rosenzweig, (2001) ėDemocratization, Decentralization and the Distribution of Local Public Goods in a Poor Rural Ecnomyî, unpublished, University of Pennsylvania, Philadelphia.

Alderman, Harold. (2002). ėDo Local Officials Know Something We Donít?  Decentralization of targeted transfers in Albania.î Journal of Public Economics 83 375-404.

Bardhan, Pranab and Dilip Mookherjee, (2000) ėRelative Capture of Government at Local and National Levelsî, American Economic Review, vol. 90(2).

Bardhan, Pranab and Dilip Mookherjee. (2001). ėDecentralizing Anti-Poverty Program Delivery in Developing Countries.î Mimeo.

Bardhan, Pranab. (2002)  ėDecentralization of Governance and Developmentî Journal of Economic Perspective. Fall.

Galasso, Emanuela and Martin Ravallion. (2001). ėDecentralized Targeting of an Anti-Poverty Program.î Mimeo.

Heinrich, Carolyn J. and Laurence E. Lynn, Jr. (1999). ėMeans and Ends: A Comparative Study of Empirical Methods for Investigating Governance and Performance.î Mimeo.

J-P. Faguet, (2001) ėDoes Decentralization Increase Government Responsiveness to Local Needs? Decentralization and Public Investment in Boliviaî, forthcoming in

Azfar, O.,  S. Kahkonen and P. Meagher. (2000). ėConditions for Effective Decentralized Governance: A Synthesis of Research Findingsî, IRIS Center Working Paper, University of Maryland.

Seabright, Paul. (1996). ėAccountability and Decentralized in Government: An incomplete contracts model.î European Economics Review 40 61-89.
 
 

VI.  Overview of History of Thought Development Economics
 
 Thorbecke, Erik.  2000.  "The Evolution of the Development Doctrine and the Role of Foreign Aid, 1950-2000".  in Finn Tarp (ed.) Foreign Aid and Development, Taylor and Francis Group. chapter,

  David Lindauer and Lant Pritchett. "What is the Big Idea? The Third Generation of Policies for Economic Growth"

 de Janvry, Alain, Rinku Murgai, and Elisabeth Sadoulet. 2002. ėRural Development and Rural Policyî. In G. Rausser and R. Just, eds., Handbook of Agricultural Economics. pdf

 Ingham, Barbara, "The Meaning of Development:  Interactions Between "New" and "Old" Ideas", World Development, Vol 21, No 11, pp. 1803-1821, 1993.