Class History: Economic Development (Summer 2017)

This page summarizes all the classes (including extra classes) of the course Economic Development in the Summer 2017 semester.


  • Class time: Tuesday 11:00 AM (Room: 701).  Thursday 11:00 AM (Room: 602).
  • Regular classes: 21
  • Extra /counseling classes: 11
  • Total classes: 32

Class 1

May 9, Room 1002, Time 11:05 - 12:45 

Chapter 1. What is development? Is the growth in income a measure of development? Development may still occur when income decreases -- prove it. What is GDP and how it is calculated. GDP as a proxy of development -- pros and cons. Per capita GDP as an alternative proxy of development -- pros and cons. 

Class 2

May 11, Room 1002, Time 11:40 - 12:30 

Nominal GDP, real GDP, per capita GDP. Relationship between nominal and per capita GDP. Relationship between nominal and real GDP. Measuring real growth from real GDP. How a shift of base year affects the calculation of growth. Math - how politicians change the base year to show inflated growth. 

Class 3

May 16, Room 1003, Time 11:30 - 12:30 

GDP deflator. How to find out inflation from GDP deflator. GNP. How to find out GNP from GDP. 

Math 1: nominal and real GDP of two years, and price of a product are given. Find out the expected price after one year. 

Math 2: Products, price, location, and ownership are given. Find out GDP and GNP. 

Class 4

May 18, Room 1001, Time 11:25 - 12:35 

A very brief review of last three classes. 

Inflation in details. Methods of calculating inflation - GDP deflator vs. CPI approach. Calculating CPI using Laspeyres index (Math). Cons of Laspeyres index.

Class 5

May 23, Room 701, Time 11:10 - 12:25 

How to overcome the shortcomings of  Laspeyres index. Calculation of inflation using Fisher index (math). Relationship between inflation and development -- scenario 1.

Class 6

May 25, Room 602, Time 11:15 - 12:30 

Various approaches of measuring economic growth. Measuring economic growth from nominal GDP and inflation. Measuring economic growth directly from real GDP. Relationship between inflation and development -- scenario 1, 2, 3, and 4.

Class 7

May 30, Room 701, Time 11:20 - 12:15 

Chapter 2. Main differences between traditional and holistic approach. GNI and PCGNI explained. Differences among GDP, GNP, and GNI, in brief. PPP adjusted income and PPP adjusted PCGNI. Popular indexes of measuring development using holistic approach. The new HDI in brief.

Class 8 (Extra)

May 30, Room 902, Time 2:00 - 3:20 PM 

(This counseling class was arranged for those who missed first few classes) 

Review of chapter 1. Development defined. Pros and cons of various proxies of development. GDP in details. GDP calculation (math). Nominal, real, and per capita GDP.

Class 9

June 1, Room 602, Time 11:20 - 12:15 

HDI in details. Dimensions, factors, and goalposts of HDI. Calculate the HDI of a country (math). Growth without development. Find out the extent of growth without development of several countries (math).

Class 10

June 6, Room 701, Time 11:15 - 12:15 

Traditional and holistic approaches of measuring development: an overview. History of HDI. 

Chapter 3. Difference between traditional and development economics. Traditional views of development. New views of developments. Definition of development based on Amartya Sen’s capability approach.

Class 11

June 8, Room 602, Time 11:30 - 12:30 

Amartya Sen’s capability approach. Increase in income does not translate into increase in advantage -- five disparities behind this. The meaning of “capability”. Three core values of development.

Class 12 (Extra)

June 8, Room 601, Time 2:30 - 3:45 

Model Test 1. Syllabus: Mathematical problems of Chapter 1 and 2. Click here for details. [view results]

Class 13 (Extra)

June 8, Room 601, Time 3:45 - 5:00 

Solution to Model Test 1.

Midterm Exam

June 10, Room 801 & 802, Time 2:30 - 4:00. 

Syllabus: Chapter 1 to 3. [view results]

Class 14

July 6, Room 602, Time 11:05 - 12:15 

Chapter 4. Linear stages model and its assumption -- situations when this model can be applied. Math 1: the slope of economic growth. Math 2: calculating the long term economic growth from historical data. Math 3: what will be the economic size of a country after N years?

Class 15

July 13, Room 602, Time 11:15 - 12:15 

Finding out long term growth rate from historical data. Finding out economic size of a country after N years from historical growth rate data. 

Math 1: 13 years of GDP of country-x are given. What will be the economic size of the country in 2025, provided that the growth is linear and the historical growth rate will still prevail in the future. 

An introduced to Harrod-Domar model.

Class 16

July 18, Room 701, Time 11:15 - 12:35

> Harrod-Domar model in details. 

> Math: Average disposable income, savings amount, investment, and output are given. Find out long term growth rate based on Harrod-Domar model. Also, find out economic size or GDP after one year. 

> Growth rate of big and matured countries are lower than the same of small countries -- explained. 

> Growth rate of two countries and N -- mathematical formula explained. 

> Math: 10 years of real GDP of a small and a big country are given. Find out N.

Class 17

July 20, Room 602, Time 11:45 - 12:35 

Solving mathematical problems similar to: 640-C, 640-D.

Class 18

July 25, Room 701, Time 11:05 - 12:30 

Chapter 5. Poverty defined. Headcount index. TPG and APG. Finding P1 and P2 using FGT index.

Class 19

July 27, Room 602, Time 11:20 - 12:35 

Math: In a small country, there are only 20 people. Their monthly income is given. From this data, find out -- Kuznets ratio and Lorenz curve.

Class 20

August 1, Room 701, Time 11:55 - 12:35 

Assignment: Topic distribution and guidelines. Click here for more information.

Class 21 (Extra)

August 1, Room 601, Time 2:25 - 3:25. Click here to view the announcement.

Mathematical problems similar to 640-C, D, F, G.

Class 22 (Extra), Class 23 (Extra)

August 1, Room 601

Time 2:25 - 3:25 (Class 22); 4:25 - 5:25 (Class 23) 

Mathematical problems: headcount index, TPG, APG, FGT (P1 and P2).

Class 24

August 3, Room 602, Time 10:45 - 11:45 AM 

(The class was started early due to the final match of Faraaz Challenge Cup Walton Inter-University Football Tournament. Click here to view the announcement.) 

How to find out GINI coefficient from Lorenz curve graph? How to find GINI coefficient precisely without a computer?

Class 25

August 8, Room 701, Time 11:15 - 12:20 

How to find out Gini coefficient without software? Differences among P0, P1, and P2. Poorest countries in the world. Top five countries with highest Gini.

Class 26

August 10, Room 602, Time 11:10 - 12:20 

Chapter 6. What are institutional factors? How do institutional factors affect the economy: number of banks, number of financial institutions, stock market, monetary policy, fiscal fiscal policy and tax.

Class 27 (Extra), Class 28 (Extra)

August 12, Room 1002

Time: 3:15 - 4:30 (Class 27); 4:30 - 5:15 (Class 28). Click here to view the announcement. 

Equations of straight line: how to construct the straight line equation when two coordinates are given? 

The basics of differential calculus: How to solve (dy/dx)? 

How can government maximize tax revenue from a luxurious product: mathematical problem. 

Class 29 (Extra), Class 30 (Extra)

August 12, Room 1002

Time: 5:30 - 6:30 (Class 29); 6:30 - 7:20 (Class 30). Click here to view the announcement. 

Chapter 8. SDG and its 17 goals - explained. Worst and best case scenario of the prospective future. Terraforming. Dyson sphere. Kardashev scale of development status.

Class 31

August 17, Room 601, Time 12:00 - 1:50

Model test. Click here for details. [view results]

Class 32 (Extra)

August 17, Room 601, Time 3:00 - 4:30 

Solution to the model test.

Final Exam

August 19 at 4:30 PM. Room 601. [view results]