LECTURES IN ECONOMIC GROWTH
Spring 2010, Wednesdays 13-15, CSS 2.0.24.    LECTURER: CHRISTIAN GROTH

Usually lecture notes will be available here at least 24 hours before the lecture in question and then you are supposed to download and print it out yourself. Occasionally, lecture notes will be handed out at the lecture or published here afterwards. I very much welcome comments and suggestions of any kind relating to this course. Please, let me know of errors, confusions, and limitations in the lecture notes and exercise problems. Class exercises Thursdays 8-10 in CSS 2.0.42.

Date Topic Read                       Comments
        before        after
3/2 Introduction. Facts about growth and world income distribution B&S Introduction and LN 1 and LN 2. Cursory: Jones and Romer (2009). LN 1 and 2 will also be handed out at the lecture. Here is LN 3, which is of relevance for the exercise class 4/2. Concerning terminology: see Groth, Ch. 2.1-2.3 (now with correct Fig. 2.3); the complete Ch. 2 for those who are interested.
10/2 Persistence of technology differences, catching-up, adjustment speed, balanced growth theorems. Bernard and Jones (1996), LN 4, and B&S 51-59. LN 5 and LN 6. LN 6 will also be handed out at the lecture.  
17/2 Brush-up of the Ramsey model. Transitional dynamics. B&S 85-111 (108-110 cursory). Alternative text: Groth Ch. 7 (now with graph + some language corrections). Those who are interested might also consult Groth Ch. 6 which contains background material for Ch. 7. Comment on a question raised.
24/2 Ramsey model, continued. Transitional dynamics.
Household heterogeneity and dynamics of wealth distribution.		 Same as 17/2 plus B&S 118-121. LN 7, which is a supplement to B&S 118-121.   We came to the dynamics of wealth distribution. A brief follow-up is here.
3/3 No lecture: Winter break.      
10/3 A Ramsey-style AK model. Learning-by-investing. B&S 205-211.
LN 8. Cursory: B&S 212-220.		   In LN 8, page 16 and App. B were missing. Besides:
A follow-up on two issues. Here: correction.
17/3 The Romer case. Theoretical and empirical perspectives on learning by doing and learning by investing. LN 8, §3. LN 9, 2nd. ed. (the first edition was OK in substance, but contained many misprints, and § 7.2 was lacking). Because of the Zeuthen Lectures at 15:00, we start 13:15 sharp and shorten the break. A brief follow-up on different approaches to the calculation of a growth rate.
24/3   Productive government services. B&S 220-225, § 4.4.2 only cursory. LN 10, § 4 only cursory.   A follow-up on the trade-off in AK models between high growth and high welfare.
31/3 Easter break.      
7/4 1. Income distribution, political economy, and growth. 2. Necessary conditions for fully endogenous growth. 1. Alesina & Rodrik (1994). LN 11. Cursory: Perotti (1996).
2. B&S 232-235. 		  A follow-up on AK models is here: LN 12 (for self-tuition). A follow-up on today's lecture is here.
8/4 Class exercises replaced by lecture on human capital in a growth context (in CSS 2.0.42). Jones (2007). Jones (2002) cursory. LN 13. B&S 239-243.   B & S 247-251 removed from syllabus. The promised LN on the Uzawa-Lucas model will come later and only be cursory. LN 14  summarizes the lecture on the Mincerian approach to h.c.
14/4 Horizontal innovations. A simple model. B & S 285-297. LN 15. LN 15 will also be handed out at the lecture.  
15/4 The first hour in class will be used for finishing the simple horizontal innovation model. B & S 297-300. A LN 16 will be handed out.  
21/4 Erosion of monopoly power. Extended Romer model. B & S 305-309. LN 17A. Alvarez and Groth (2005), only cursory.  LN 17B is here.  
28/4 Robust version of the increasing variety model: the Jones model. Vertical innovations. Jones (1995a), excl. § 4-5. A text on vertical innovations is in Section 2 here (Section 1, 4, and 5 are only cursory).    
5/5 Renewable and non-renewable natural resources and growth. Section 1 and 3-4 of Groth (2007). LN 18. Cursory reading: Section 1 of Smulders (1995).    
12/5 Social discounting. Macroeconomic cost-benefit analysis of the climate change problem. We begin with a brief follow-up on the extended D-H-S-S model, see Section 4 of Groth (2007). Then read LN 19 and LN 20 in combination with Arrow (2007). LN 19 and 20 will also be handed out at the lecture. Correction to the derivation of the break-even utility discount rate on the whiteboard. Some graphs and debates concerning global warming
19/5 Population and growth one million B.C. to 1990. Growth accounting vs. sources of growth. Kremer (1993) (§ III and IV cursory).
B&S 433-447, 457-460.		   Correction Lists now available. Thanks for contributions!
 Reason for making also § III of Kremer cursory is given here.
26/5 This last meeting will be used for exam preparation. It is recommended to send me questions by e-mail in advance. The meeting is 1:15 - 3:00 p.m. in the usual lecture room, CSS 2.0.24. At the end of the meeting I was asked about a non-existing lecture note about the Uzawa-Lucas model. My answer is here.
3/6 3-hours closed book exam.