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 2016 Syllabus
Lectures on Mondays and Wednesdays 4.00pm-5.30pm, in 277 Cory
Sections on Tuesdays and Thursdays. Sections start week of Jan. 25. Section announcements and material available here.
Part I: Core concepts
Lecture 1 (Jan. 20): Introduction
Lecture 2 (Jan. 25): What is income?
Lecture 3 (Jan. 27): What is capital?
Lecture 4 (Feb. 1): Income growth in the long run
Lecture 5 (Feb. 3): The capital/income ratio in the long run
Lecture 6 (Feb. 8): Inequality between labor and capital
Lecture 7 (Feb. 10): Inequality between individuals
Lecture 8 (Feb. 17): The interplay between inequality and growth
Part II: Labor income inequality
Lecture 9(Feb. 22): Income inequality across time and space
Lecture 10(Feb. 24): Labor incomeinequality: the role of market forces
Lecture 11 (Feb. 29): Labor income inequality: the role ofinstitutions
Lecture 12 (Mar. 2): Top labor incomes
Lecture 13 (Mar. 7): Midterm (solutions)
Part III: Capital inequality
Lecture 14 (Mar. 9): Wealth inequality across time and space
Lecture 15 (Mar. 14): Models of the wealth distribution
Lecture 16 (Mar. 16): r>g
Lecture 17 (Mar. 28): Inherited versus self-made wealth (1)
Lecture 18 (Mar. 30): Inherited versus self-made wealth (2)
Lecture 19 (Apr. 4): Offshore wealth
Part IV:Global inequality
Lecture 20(Apr. 6): The world distribution of income
Lecture 21 (Apr. 11): Global inequality and factor mobility
Lecture 22 (Apr. 13): Global inequality and trade
Part V:Regulating inequality
Lecture 23 (Apr. 18): Optimal labor income taxation
Lecture 24 (Apr. 20): Optimal capital taxation
Lecture 25 (Apr. 25): Taxation in a globalized world
Lecture 26 (Apr. 27): Review and conclusion
Final exam: May 13 (solutions)
Grade distribution