Unlocking development through evidence-based research
Jun 2025
Enabling world-class research
Lorenzo Casaburi delves into critical challenges in development economics, particularly in sub-Saharan Africa. His research sheds light on agricultural markets, behavioral insights, and the role of finance in economic growth. Focusing on the transformation of rural economies, Casaburi addresses the complexities of fostering modernization while ensuring inclusive development. Through innovative approaches, he aims to drive systemic change that promotes sustainability and reduces inequality.
Pressing challenges to address
- Enhancing technology adoption and agricultural productivity across Africa
- Advancing sustainable urbanization and structural transformation in the Global South
- Strengthening climate change mitigation and adaptation for vulnerable populations in developing economies
Development economics: a growing field
Development economics studies economic challenges and policies in lowand middle-income countries, primarily in the Global South. That’s more than 80 % of the world’s population! Economics has traditionally been a very U. S.-, and to a lesser extent, Euro-centric field, with research and policy debates often shaped by the priorities and contexts of high-income countries. However, things have been slowly changing since the early 2000s. Since that time, development economics has become a mainstream field in economics. Top U. S. departments have hired a growing number of researchers in the field, and this trend has expanded to economics departments worldwide. These days, development economics is a key field in most research-oriented economics departments.
The rise of RCTs in development economics
What has driven this change? The recent growth in development economics has been closely associated with the use of randomized controlled trials (RCTs), a methodological innovation that has generated widespread interest and has now spread to many other fields of applied research. The Nobel Prize awarded to Banerjee, Duflo, and Kremer was the culmination of this process. Following innovations in the use of field experiments in development, RCTs have been increasingly used in other fields to study a wide range of questions in the Global North, including in Switzerland, demonstrating the versatility of experimental methods beyond development economics.
Key trends in development economics
However, in my view, the success of development economics can be attributed to at least two other sustained trends: creative approaches to identifying causal effects and improved measurement of outcomes of interest. For researchers working on program evaluation, a common pushback is that some questions cannot be answered causally and that important outcomes cannot be measured. The body of work developed over the last twenty years inspires optimism on these two fronts. Researchers have been working, often in partnership with governments and other implementing partners, to run experiments on “big questions,” including, among many others, market functioning, state capacity, and general equilibrium effects. Second, there have been many innovations in measurement, ranging from the use of scales to assess a broad range of behavioral outcomes – life satisfaction, stress, trust, social integration, biases – to the use of administrative data and other forms of big data, such as remote sensing data or cell phone records, which provide a much more cost-effective alternative to primary data collection.
Establishing a cluster for development economics
What about the University of Zurich? In the mid-2010s, the department made a major effort to hire development economics researchers, resulting in the creation of four professorships in this field, with expertise across a wide range of regions. Zurich is now generally considered one of the top centers for development economics in Europe, with a diverse range of courses at the bachelor, master, and doctoral levels. It regularly attracts top prospective predoctoral and doctoral students, who work with faculty on research topics related to global economic development. Over the last few years, PhD students working in this field have obtained strong academic placements and are now junior professors around the world. Zurich’s development economics research benefits from intersections with behavioral economics, a long-standing strength of our department, and other fields such as labor, political economy, and theory. Together with other partners like the Swiss Re Foundation, the UBS Center has played an important role in the growth of this development economics cluster, including supporting the recruitment of researchers from abroad and providing scholarships for PhD students.
The role of research in development economics
Like many of my colleagues, my research is driven by two forces: an intellectual curiosity to improve understanding of human behavior, markets, and institutions, and a desire to have a positive impact in the areas we study. For example, in previous research, my co-author Jack Willis and I designed and experimentally evaluated a crop insurance product (pay-at-harvest), which is now being tested with thousands of farmers across several countries in Africa and beyond. More recently, I have been collaborating with the Ministry of Lands in Uganda, analyzing large-scale data from digital land records, and contributing to the revision of the National Land Policy. Many other colleagues in our department are having an impact that goes beyond academia, for instance by launching a mentoring program for prospective graduate students from Africa or collaborating with governments and firms worldwide.
Challenges in rural Africa and beyond
As I think about the future, one has to balance cautious optimism regarding improvements in poverty, health, and education indicators with the persistent challenges of low productivity, conflict, and the implications of climate change. While many African countries are expected to experience GDP growth in the coming years, one of the most pressing concerns is ensuring that this growth is inclusive and does not exacerbate inequality. Without targeted policies and investments in education, infrastructure, and social protection, economic gains may be concentrated among a small segment of the population, leaving many behind.
This challenge is also very relevant to my own research, which mostly focuses on rural areas in East Africa – including work on land productivity and agricultural markets. For scholars working in this field, a key open question concerns the modernization of the agricultural sector and the growth of other sectors, such as manufacturing or services, a process often labeled as structural change. Agriculture remains the dominant employer in many low-income countries, yet it suffers from low productivity, small-scale farming, and slow technology adoption. While modernization is essential for economic efficiency, small farms often serve as a critical safety net in regions with limited social protection systems. Understanding how to foster a transformation of the agricultural sector while safeguarding the welfare of millions of smallholders is a crucial and difficult question for the next decades – one that research can help answer.
Lorenzo Casaburi delves into critical challenges in development economics, particularly in sub-Saharan Africa. His research sheds light on agricultural markets, behavioral insights, and the role of finance in economic growth. Focusing on the transformation of rural economies, Casaburi addresses the complexities of fostering modernization while ensuring inclusive development. Through innovative approaches, he aims to drive systemic change that promotes sustainability and reduces inequality.
Pressing challenges to address
- Enhancing technology adoption and agricultural productivity across Africa
- Advancing sustainable urbanization and structural transformation in the Global South
- Strengthening climate change mitigation and adaptation for vulnerable populations in developing economies
Development economics: a growing field
Development economics studies economic challenges and policies in lowand middle-income countries, primarily in the Global South. That’s more than 80 % of the world’s population! Economics has traditionally been a very U. S.-, and to a lesser extent, Euro-centric field, with research and policy debates often shaped by the priorities and contexts of high-income countries. However, things have been slowly changing since the early 2000s. Since that time, development economics has become a mainstream field in economics. Top U. S. departments have hired a growing number of researchers in the field, and this trend has expanded to economics departments worldwide. These days, development economics is a key field in most research-oriented economics departments.
The rise of RCTs in development economics
What has driven this change? The recent growth in development economics has been closely associated with the use of randomized controlled trials (RCTs), a methodological innovation that has generated widespread interest and has now spread to many other fields of applied research. The Nobel Prize awarded to Banerjee, Duflo, and Kremer was the culmination of this process. Following innovations in the use of field experiments in development, RCTs have been increasingly used in other fields to study a wide range of questions in the Global North, including in Switzerland, demonstrating the versatility of experimental methods beyond development economics.
Lorenzo Casaburi is the UBS Foundation Associate Professor of Development Economics (with tenure) in the Department of Economics at the University of Zurich.
Quote
Understanding how to foster a transformation of the agricultural sector while safeguarding the welfare of millions of smallholders is a crucial and difficult question for the next decades.
Economic challenges of our time
From rising inequality and global trade tensions to climate change and the impact of artificial intelligence on labor markets – economists today are grappling with fundamental questions that will shape our collective future. In this special edition of the Public Paper series, all affiliated professors of the UBS Center share their perspectives on these challenges. Their contributions highlight how cutting-edge research conducted at the Department of Economics at the University of Zurich can help us better understand – and potentially solve – some of the most urgent issues of our time.
It is precisely this ambition that defines the UBS Center for Economics in Society. Since its founding, the Center has served as a platform for dialogue between academia, business, and policymakers and as a catalyst for excellence in economic research. That vision goes back to Kaspar Villiger. As the founding Chairman of the Foundation Council, he played a pivotal role in establishing and shaping the UBS Center.
With this fifteenth edition of the Public Paper series, we honor Kaspar Villiger’s extraordinary contributions and legacy. By strengthening research capacity at the University of Zurich and fostering public dialogue around key societal questions, his vision continues to inspire the Center’s mission: bridging knowledge and society to build a better future.
From rising inequality and global trade tensions to climate change and the impact of artificial intelligence on labor markets – economists today are grappling with fundamental questions that will shape our collective future. In this special edition of the Public Paper series, all affiliated professors of the UBS Center share their perspectives on these challenges. Their contributions highlight how cutting-edge research conducted at the Department of Economics at the University of Zurich can help us better understand – and potentially solve – some of the most urgent issues of our time.
It is precisely this ambition that defines the UBS Center for Economics in Society. Since its founding, the Center has served as a platform for dialogue between academia, business, and policymakers and as a catalyst for excellence in economic research. That vision goes back to Kaspar Villiger. As the founding Chairman of the Foundation Council, he played a pivotal role in establishing and shaping the UBS Center.
Lorenzo Casaburi on Google Scholarbrowse
Land and economic development in Sub-Saharan Africa
Author
UBS Foundation Associate Professor of Development Economics
Lorenzo Casaburi is the UBS Foundation Associate Professor of Development Economics (with tenure) in the Department of Economics at the University of Zurich. His research primarily explores economic development in Sub-Saharan Africa, with a particular focus on agricultural finance, competition, and land markets. Lorenzo's work has been funded by several donors, including the European Research Council (ERC Starting Grant), the Swiss National Science Foundation (Eccellenza Grant), USAID, and DFID. Lorenzo is a Research Fellow at BREAD, CEPR, IGC, IPA, and J-PAL, and serves as an Associate Editor for Econometrica and the Economic Journal. Additionally, he is a member of the BREAD Board of Directors. Lorenzo earned his B.A. from the University of Bologna and his Ph.D. in Economics from Harvard University. Prior to his position at Zurich, he completed a postdoctoral fellowship at the Stanford Institute for Economic Policy Research (SIEPR).
UBS Foundation Associate Professor of Development Economics
Lorenzo Casaburi is the UBS Foundation Associate Professor of Development Economics (with tenure) in the Department of Economics at the University of Zurich. His research primarily explores economic development in Sub-Saharan Africa, with a particular focus on agricultural finance, competition, and land markets. Lorenzo's work has been funded by several donors, including the European Research Council (ERC Starting Grant), the Swiss National Science Foundation (Eccellenza Grant), USAID, and DFID. Lorenzo is a Research Fellow at BREAD, CEPR, IGC, IPA, and J-PAL, and serves as an Associate Editor for Econometrica and the Economic Journal. Additionally, he is a member of the BREAD Board of Directors. Lorenzo earned his B.A. from the University of Bologna and his Ph.D. in Economics from Harvard University. Prior to his position at Zurich, he completed a postdoctoral fellowship at the Stanford Institute for Economic Policy Research (SIEPR).