This lecture focuses on the analysis of markets and households in developing countries. In this regard, particular attention is given to the investigation of poverty. After an introductory lecture on the measurement and interpretation of poverty, the following lectures concentrate on the consequences of poverty. In this context, famine, malnutrition, the situation of women, migration and unemployment, as well as population issues are discussed. Subsequently, the course deals with possible vicious circles of poverty in rural areas. Here, the main focus is on examining how missing or poorly functioning land, credit, insurance and labor markets can constitute vicious circles of poverty. In this connection, policy measures to combat these vicious circles are discussed. Finally, the course deals with education and health policy in developing countries and examines how these policies can contribute to overcoming poverty.