Microeconomics for Development

Coordinator: prof. dr. M.P. Pradhan

  • Menno Pradhan
    Menno Pradhan
Menno Pradhan

Email: m.p.pradhan@vu.nl


Fields: applied micro, development, education

Menno Pradhan (PhD Tilburg University) is professor in Project and Program Evaluation for International Development at the VU and UvA Economics departments since 2007. Prior to this he worked at the World Bank office in Indonesia (7 years) and Washington (2 years), at the VU (7 years) and Cornell University (1 year). He is also a co-academic director of the Amsterdam Institute for International Development and a fellow at the Tinbergen Institute.

Research Interests:

His research interests are in the areas of basic education, early childhood development, community empowerment and health. All of his work is empirical, usually based on household surveys, or surveys that were specifically designed for the purpose of an impact evaluation.

Classes taught:

BSc: International Trade and Development Economics
MSc: Micro Economics for Development

Selected recent publications:

de Ree, J., Alessie, R. & Pradhan, M. 2013, “The Price and Utility Dependence of Equivalence Scales: Evidence from Indonesia”, Journal of Public Economics, vol. 97, pp. 272-281.

Kruse, I., Pradhan, M. & Sparrow, R. 2012, “Marginal Benefit Incidence of Public Health Spending: Evidence from Indonesian Sub-national Data”, Journal of health economics, vol. 31, no. 1, pp. 147-157.

Pradhan, M. & Ravallion, M. 2000, “Measuring poverty using qualitative perceptions of consumption adequacy”, Review of Economics and Statistics, vol. 82, no. 3, pp. 462-471.

Pradhan, M., Saadah, F. & Sparrow, R. 2007, “Did the Health Card Program Ensure Access to Medical Care for the Poor during Indonesia’s Economic Crisis?”, World Bank Economic Review, vol. 21, no. 1, pp. 125-150.

Pradhan, M., Suryadarma, D., Beatty, A., Wong, M., Gaduh, A., Alisjahbana, A. & Artha, R.P. 2014, “Improving Educational Quality through Enhancing Community Participation: Results from a Randomized Field Experiment in Indonesia”, American Economic Journal-Applied Economics, vol. 6, no. 2, pp. 105-126.

prof. dr. C.T.M. Elbers
dr. R.H. Oostendorp
prof. dr. M.P. Pradhan
prof. dr. P.F. Lanjouw

Course objective

In this course we apply microeconomics to topics in development economics. The aim is not to be complete, but to select a number of well- studied topics, stressing their empirical foundation as well as the role of policy. Students should be able to:

– demonstrate knowledge and understanding of microeconomic principles underlying economic development
– have a good understanding of empirical strategies to identify microeconomic foundations of development
– demonstrate an ability to derive policy implications from microeconomic development analysis

Course content

The concepts and measurement of poverty and principles of targeting for poverty alleviation will be extensively discussed as well as methods for evaluating the impact of policy. The impact of market imperfections, particularly for handling risk, on firm and household behaviour will be covered, including a discussion of consumption smoothing, risk-sharing, diversification and microfinance strategies. The rincipal-agent relationship between donors and recipients of foreign aid will be illustrated with a discussion of elite capture and the measurement and costs of corruption. During the course, extensive use will be made of empirical evidence.

Course reading

Selected articles to be announced.

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