DV492 Half Unit
Economic Development Policy III: Government Policy Analysis
This information is for the 2025/26 session.
Availability
This course is available on the MSc in Anthropology and Development, MSc in Development Management (Applied Development Economics), MSc in Development Management (Applied Development Economics) (LSE and Sciences Po), MSc in Development Management (Political Economy), MSc in Development Management (Political Economy) (LSE and Sciences Po), MSc in Development Studies, MSc in Economic Policy for International Development, MSc in Environmental Economics and Climate Change, MSc in Environmental Policy, Technology and Health (Environmental Economics and Climate Change) (LSE and Peking University), MSc in Health and International Development, MSc in International Development and Humanitarian Emergencies and MSc in Political Economy of Late Development. This course is available with permission as an outside option to students on other programmes where regulations permit. This course uses controlled access as part of the course selection process.
How to apply: You will need to attend the Applied Economic Development session on Monday 22 September 2025, which will give students information about the courses.
Deadline for application: You should make your request to take ID courses by 12 noon Friday 26 September 2025.
You will be informed of the outcome by 12 noon Monday 29 September 2025.
For queries contact: intdev.enquiries@lse.ac.uk
This course is available to MSc and MPA students from throughout the LSE subject to space constraints; specifically we reserve the right to limit enrolment of students from outside the Department of International Development.
Entry onto the course might be limited at the discretion of the instructor.
Requisites
Additional requisites:
Students must have completed Foundations of Applied Econometrics for Economic Development Policy (DV494).
Course content
This course explores key issues in government policies in developing countries. The course will draw on specific examples chosen from development cases worldwide to learn which policies have worked, which ones have not, and how a rigorous analysis of these experiences can inform the design of better economic development policies in the future. It begins by introducing core concepts from the political economy of development policy. In particular, the course will cover issues related to market failures, government failures, externalities, and the political economy constraints surrounding policymaking. The course will also discuss theoretical and empirical work on the economic consequences of government interventions. The second part focuses on challenges around industrial development and economic change in the developing world context, where limited state and administrative capacity impose important constraints in policymaking. Beyond these topics, the course will provide background on relevant analytical tools in quantitative research, and develop critical skills to interpret empirical evidence in development economics.
Coursework will include a combination of class discussions, problem sets, and presentations.
Teaching
15 hours of seminars and 20 hours of lectures in the Winter Term.
This course has a reading week in Week 6 of Winter Term.
There will also be a revision session in the WT or early ST.
Formative assessment
Students will be expected to produce 2 problem sets in the WT.
Indicative reading
1. Acemoglu, Daron, and James A. Robinson. "Economics versus politics: Pitfalls of policy advice." Journal of Economic perspectives 27.2 (2013): 173-192.
2. Rodrik, Dani. 2008. "Second-Best Institutions." American Economic Review 98 (2): 100–104.
3. Pritchett, Lant, Michael Woolcock, and Matt Andrews. "Looking like a state: techniques of persistent failure in state capability for implementation." The Journal of Development Studies 49.1 (2013): 1-18.
4. Besley, T and Persson.T. 2014. “Why Do Developing Countries Tax So Little?. Journal of Economic Perspectives, 28 (4): 99–120
5. Reed, Tristan. "Export-Led Industrial Policy for Developing Countries: Is There a Way to Pick Winners?." Journal of Economic Perspectives 38.4 (2024): 3-26.
6. Atkin, David, and Dave Donaldson. "The role of trade in economic development." Handbook of International Economics. Vol. 5. Elsevier, 2022. 1-59.
Assessment
Exam (70%), duration: 120 Minutes in the Spring exam period
Problem sets (30%)
The course assessment will be based on a final exam (70%) and problem sets and study aids (30%).
Key facts
Department: International Development
Course Study Period: Winter Term
Unit value: Half unit
FHEQ Level: Level 7
CEFR Level: Null
Total students 2024/25: 52
Average class size 2024/25: 17
Controlled access 2024/25: NoCourse selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Personal development skills
- Leadership
- Self-management
- Team working
- Problem solving
- Application of information skills
- Communication
- Application of numeracy skills
- Commercial awareness
- Specialist skills