This is an archived course. A more recent version may be available at ocw.mit.edu.

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Assignments

There were two types of assignments: problem sets and a constructive critique. Problem sets were distributed approximately every other week and due a week later. The constructive critique was due at the end of the course.

Problem Sets

Part 1: Prof. Kremer

ASSIGNMENTS TOPICS SUPPORTING DOCUMENTS
Problem set 1 (PDF)

The aggregate production function

Growth accounting

Problem 1

Banerjee, Abhijit, and Esther Duflo. "Growth Theory through the Lens of Development Economics." Chapter 7 in Handbook of Economic Growth. Vol. 1A. Edited by Philippe Aghion and Steven Durlauf. Amsterdam, The Netherlands: North-Holland, 2005. Buy at Amazon ISBN: 9780444520418; Buy at Amazon 9780444508379 (set).

Problem 2

Young, Alwyn. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience." Quarterly Journal of Economics 110, no. 3 (August 1995): 641-680.

Hsieh, Chang-Tai. "What Explains the Industrial Revolution in East Asia? Evidence from the Factor Markets." American Economic Review 92, no. 3 (June 2002): 502-526.

PS1data.xls (XLS)
Problem set 2 (PDF)

Technology adoption: cows and contracting

Production functions with negative cross-derivatives in worker quality

  
Problem set 3 (PDF)

A model of fertility choice and technology

Population, fixed resources, and entrepreneurship in growth

  

Part 2: Prof. Townsend

ASSIGNMENTS TOPICS SUPPORTING DOCUMENTS
Problem set 4 (PDF)

Households as firms

Precautionary savings

Problem 1

Samphantharak, Krislert, and Townsend, Robert. "Households as Corporate Firms: Constructing Financial Statements from Integrated Household Surveys." Working paper, University of California, San Diego, 2006. (This resource may not render correctly in a screen reader.PDF)

For a longer treatment, see
Buy at Amazon ———. Households as Corporate Firms: An Analysis of Household Finance Using Integrated Household Surveys and Corporate Financial Accounting. New York, NY: Cambridge University Press, 2009. ISBN: 9780521124164.

blank_tables.xls (XLS)
Problem set 5 (PDF)

Financial intermediation, occupational choices, and income

Savings and consumption smoothing: evidence from Thailand

A model of risk-sharing with two-sided limited commitment

Problem 1

Townsend, Robert M., and Sergio S. Urzua. "Measuring the Impact of Financial Intermediation: Linking Contract Theory to Econometric Policy Evaluation." Macroeconomic Dynamics 13, Supplement S2 (September 2009): 268-316. (Working paper, This resource may not render correctly in a screen reader.PDF)

Kaboski, Joe, and Townsend, Robert. "The Impact of Credit: An Early Evaluation of a Large Scale Government Credit Injection." Mimeograph, University of Chicago, 2008.

———. "Consumption Investment and Savings Under Credit Constraints: Testing Structural Theory Using a Large-Scale Microfinance Experiment." Working paper, Massachusetts Institute of Technology, 2008.

Problem 2

Paxson, Christina H. "Using Weather Variability to Estimate the Response of Savings to Transitory Income in Thailand." American Economic Review 82, no. 1 (March 1992): 15-33.

paxson.dta (DTA)

Constructive Critique

Students will be required to turn in a written Constructive Critique. The Constructive Critique should contain criticism(s) of the literature or state of the art research (broadly) covered in class (or in the readings). These criticisms should be followed by a way to remedy the criticized outcome. You do not have to endorse the idea(s) presented as good enough for eventual work, just something you want to vet in class. We limit the number of pages of the final critique to four.

We strongly encourage students to work in groups of two people, as discussing your ideas is an important part of the learning process.

We shall probably use two recitations for a discussion group around these Constructive Critiques, in which Prof. Townsend will participate as well.

Due date: day of the final exam
Groups: 2 people
Maximum length: 4 pages
Presentation of preliminary constructive critiques: Recitations following Ses #19 and Ses #21.