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 inequality**

Lecture 9 (Feb. 22): Income inequality across time and space

Lecture 10 (Feb. 24): Labor income inequality: the role of market forces

Lecture 11 (Feb. 29): Labor income inequality: the role of institutions

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
*