LECTURES IN ECONOMIC GROWTH
Spring 2014
Tuesdays 13-15 in CSS 7-0-18
LECTURER: CHRISTIAN GROTH
Textbook:
Acemoglu: Introduction to Modern Economic Growth, Princeton University
Press, 2009.
Groth: Lecture Notes in Economic Growth, Febr. 2014.
All in one pdf-file (Short
Note 1, dated 21/2, included as Ch. 17).
I very much welcome comments and suggestions of any kind relating to the course
material, including the lecture notes and exercise problems. The first part of
the lecture notes (Ch. 1-7)
here, the second part (Ch. 8-17)
here. Complete list of contents
here.
The
Class exercises
are given by Niklas Brønager Thursdays 8-10 in CSS 7-0-22.
| Date | Topic (ex ante as planned, ex post as realized) | Read (DA means Daron) | Comments | |
| before | after | |||
| 4/2 | Introduction. Facts about growth and world income distribution. Refresher: Terminology on technology. Transition to continuous time. | DA Chapter 1-2, 5, and 24, but only these chapters, are available for download here. |
Slides from lecture (not all in the textbook).
Afterthoughts. Errata to textbook. |
|
| 11/2 | Elasticity of factor substitution. Neutral vs. biased technical change. | Afterthoughts. | ||
| 18/2 | Balanced growth theorems. Comparative dynamics. Growth accounting. | Short Note 1 is about skill-biased technical change. | ||
| 25/2 | Transitional dynamics, speed of convergence (SOC), and Barro regressions. Technology differences across countries. | The technical details about SOC and Barro regressions are not directly exam relevant. This means that in LN 6, §6.3.2, 6.3.3, and 6.4 should have been marked by an asterisk. | Growth accounting for the very long run. | |
| 4/3 | A "population breeds ideas" model. The end of the Malthusian regime. Proximate vs. fundamental determinants of differences in economic performance. |
Slides from lecture Afterthoughts. Errata to Lecture Notes 2, 4, and 5. |
||
| 11/3 | Brush-up of the Ramsey model for a competitive economy. | Afterthoughts. | ||
| 18/3 | The social planner. Application to the climate change problem. | Midterm paper problem to be announced 18/3. | Part of a draft of LN 8 was handed out. It contained several typos and the appendix was erroneous. The now posted version is a complete and corrected version. | |
| 25/3 | Brief brush-up of Diamond's OLG model. Life-cycle approach to human capital. Separation theorem. Human wealth maximization. | Some typos in LN 8 and 9. |
We came to LN 9.3. More typos in LN 9. |
|
| 1/4 | The Mincer equation. Balanced growth with human capital and R&D. Human capital and catching-up. |
LN 10-11 here. Deadline for midterm paper 1/4. |
Human capital and catching-up will be considered in Exercise V.3. More typos in LN 9. |
|
| 8/4 | The simple AK model. Reduced-form AK model with human and physical capital. Learning by investing: Arrow vs. Romer. | Homework returned with comments. | ||
| 15/4 | Empirics on learning by doing. Weak and strong scale effects. Types of technological innovations. | As usual, sections indicated to be cursory reading only means that the technical aspects are not relevant for the exam. | As announced at the lecture there is an extended version of Ch. 14 of the lecture notes which replaces the first posted brief version of Ch. 14. Typo in LN 13. | |
| 22/4 | No
lecture.
|
|||
| 29/4 | The lab-equipment model of horizontal innovations. | We begin with a follow-up on the issues from 15/4. | Typos in LN 14 | |
| 6/5 | The lab-equipment model of horizontal innovations, cont'd. Social planner. Stochastic erosion of monopoly power. Dilemmas in patent design. The knowledge-spillover model: Romer's vs. Jones' version. Brief intro to: expanding consumer good varieties; vertical innovations and creative destruction. | The social planner problem will be dealt with in class in connection with Exercise VII.4 and the Jones (1995a) model will be dealt with in connection with Exercise VII.7. |
Afterthoughts. Typos in LN 15.
|
|
| 13/5 | Natural resources, environment, and sustainable
economic development. General discussion of issues raised in the Discussion Forum in Absalon. |
In connection with the questions in Discussion Forum about the relationship between inequality and growth there is a list of references here. | ||
| LN 1-17 in one pdf-file. List of contents included. | ||||
| 4/6 | 3-hours closed book exam. | |||