Find below brief details of the course.

What will students learn in this course?

This course focusses on how to bring efficiency in resource allocation inside and outside the market. We know that mainstream economics considers, that the motive of self-interest can bring efficiency in a market. However, the same selfish motives bring inefficiency in the case of adverse selection and moral hazard and there is no solution with the market regarding the issues of exclusion due to these two problems.

Likewise, the mainstream economics ignores the presence of economy outside the market, while the motives of other regarding preferences is playing a major role in the resource allocation beyond market. But, again the presence of asymmetric information makes such allocation inefficient. Due to which most of the resources land in the hands of non-deserving people.

The policy focus of the main stream economics is on developing institutions (such as financial intermediaries) for minimizing inefficiency in the allocation of scarce resources inside the market, however, it completely ignores outside market economy and thus do not provide any policy prescription for brining efficiency in the resource allocation, taking place there. In this course, we will highlight the consequence of this approach for the developing countries and suggest policy measures for their development. We will explain that how the development of various institutions can decrease the impact of asymmetric information on resources allocation outside the market, and thus help us to solve the issues of hunger and poverty (two major targets in SDGs). The course will also explain the dynamics of such institutions.