Economic Growth

Module B: Take Home Assessment

Part A: Inequality Estimation using HCES 2022-24 Dataset (Dataset available on Canvas)

Question 1: [15 points] What is Gini coefficient? Is a higher Gini coefficient implying higher inequality?

Question 2: [25 points] Estimate the Gini Coefficient using HCES 2022-24 dataset.

Question 3: [25 points] Estimate the Gini Coefficient for state “Gujarat” and “Kerala”. Does one of these have a higher inequality?

Hint – Doing this is tricky. You will have to run the inequality do-file twice. After loading the HCES 2022-23 data, use:

and then run the do-file. Note down your Gini Coefficient. In next step, repeat the process except now you will run:

after loading your data. Note the Gini Coefficient. In case this step is not clear, please reach out to me over email immediately.

Question 4: [10 points] Using all possible sources (including AI), why do you think one of these states has a higher inequality than the other?

Part B: Questions on Module B

Question 5: [25 points] Most of the policies we have studied help low-income countries accelerate economic growth but also increase inequality. Do you think it is possible for low-income countries to transition to high-income countries?

Question 6: [25 points] In terms of your understanding of Module B literature, do you think you as a policy advisor should pay particular attention to inequality?

Question 7: [25 points] Do you think opening of trade can help economies achieve a high economic growth along with a reduction in inequality? What is the actual evidence on trade and inequality? How would you as a policymaker approach opening up of trade in your respective country?

Part C:

Question 8: [25 points] What are some of the major learnings that you have had from the material discussed in Module B? Please feel free to list any specific material that is of interest to you.