Law and Economic Development

Undergraduate / Graduate

Why do some nations perform better than others, whether measured by income, happiness, health, environmental quality, educational quality, freedom, etc.? We explore the proximate causes of inequality across countries, including the role of human capital, natural resources, technology and market organization. We also explore the root causes of long term differences in welfare. We will consider the role of geography (e.g., location in tropical areas) and technological development (e.g., the impact of plow agriculture) on welfare. We will spend a substantial amount of time on the role of institutions, broadly defined, on development. We will explore the value of state capacity, democracy, and the common law. We will study the impact of disruptions such as the slave trade, colonialism and war. Ultimately, we will try to understand the implications of each explanation for development policy. Time permitting, we will also consider consider optimal, second-best rules for countries with weak state capacity and limited rule of law. Students will be required to complete a review and critical analysis of the literature on a specific topic in development (20-25 pages). The topic must be approved by the professor. (cross-listed as LAWS 43232)