This course provides an introduction to the analysis of economic inequalities and the interplay between inequality and economic growth. It deals with three sets of core questions: 1) How does inequality evolve over the path of development? 2) What are the theories that can explain the degree of economic inequalities and its dynamic? 3) How do policies affect inequalities, and what types of policies can foster equitable growth?
Spring 2017 Syllabus
Lectures on Tuesdays 5.00pm-8.00pm, in Valley Life Sciences 2060
Sections on Wednesdays and Thursdays. Sections start week of Jan. 16. Section announcements and material available here.
Course material (including exams, solutions, grade statistics) for previous year available here.
Part I: Core concepts
Lecture 1: Introduction
Lecture 2: What is income?
Lecture 3: What is capital?
Lecture 4: Inequality between labor and capital
Lecture 5: Inequality between individuals: Measurement
Lecture 6: Inequality between individuals: Trends
Lecture 7: Inequality between individuals: The role of government
Lecture 8 [skipped]: The interplay between inequality and growth
Part II: Labor inequality
Lecture 9: Labor income inequality: the role of market forces
Lecture 10: Labor income inequality: the role of institutions
Lecture 11: Gender inequality on the labor market
Lecture 12: Top labor incomes
Part III: Capital inequality
Lecture 13: Wealth inequality across time and space
Lecture 14: Models of the wealth distribution
Lecture 15: r>g
Lecture 16 : Inherited versus self-made wealth (1)
Lecture 17: Inherited versus self-made wealth (2)
Lecture 18: Offshore wealth
Part IV: Global inequality
Lecture 19: The world distribution of income
Lecture 20: Global inequality and factor mobility
Lecture 21: Global inequality and trade
Part V: Regulating inequality
Lecture 22: Optimal labor income taxation
Lecture 23: Optimal capital taxation
Lecture 24: Taxation in a globalized world
Lecture 25: Review and conclusion
Final exam: May 12