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Dave Donaldson presents Session 3: Distortions and measurement. Course Description: Perhaps the central question of economic development and structural transformation is how to increase productivity. As economies move out of agriculture, this question naturally hinges on the major private-sector producers in the modern economy: firms. The growing body of research on firms in lower-income countries is notable in the wide variety of both analytical methods and sources of data that are employed either separately or together. Research combines RCTs, structural modelling, survey data collected by researchers and, increasingly, rich administrative data at the level of individual transactions and at more aggregate levels. To lower entry barriers for scholars wishing to work in the area, the course aims to provide both an overview of issues and an introduction to how the variety of approaches are used to understand private sector growth and its constraints. Lectures will be interactive with Q&A but also recorded and made available for later viewers. The virtual course, offered jointly by PEDL and STEG, will meet weekly on Fridays from 15:30 - 17:00 London time beginning on 6 February 2026. Schedule: 6 Feb Penny Goldberg (Yale) Overview of firms and development 13 Feb Chad Syverson (University of Chicago) Modeling firms and firm growth 20 Feb Dave Donaldson (MIT, CEPR) Distortions and measurement 27 Feb Gabriel Ulyssea (UCL, CEPR) Formalisation, taxation, and subsistence 6 March Ernest Liu (Princeton) Network structures at the industry-level 13 March Meredith Startz (Dartmouth) Local networks of trade and exchange 20 March Lauren Bergquist (Yale, CEPR) Markets and competition 27 March Ezra Oberfield (Cornell) Value chains and productivity transmission 3 April Break for Easter 10 April Isabela Manelici (LSE, CEPR) International trade, MNCs and GVCs 17 April Alessandra Peter (NYU, CEPR) Models of corporate finance for development 24 April Julia Fonseca (Uni of Illinois) Developing country financial networks and data 1 May Cynthia Kinnan (Tufts) Financial frictions 8 May John Van Reenen (LSE, CEPR) Management and productivity 15 May Francis Annan (Berkeley), Virginia Minni (Uni of Chicago, CEPR), Tommaso Porzio (Columbia, CEPR) Recent applications