Year of entry: 2020
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Course unit details:
|Unit level||FHEQ level 7 – master's degree or fourth year of an integrated master's degree|
|Teaching period(s)||Semester 2|
|Available as a free choice unit?||Yes|
The aim of this course is to provide an advanced treatment of the main issues, concepts and techniques in modern growth theory.
At the end of this course students should be able to
(i) understand and critically evaluate alternative theories of growth;
(ii) develop models of their own from which to derive original results.
Exogenous Growth Models
Barro and Sala-i-Martin: Chs. 1,2.
Cass, D., 1965. Optimum growth in an aggregative model of capital accumulation. Review of Economic Studies, 32, 235-240.
King, R.G. and S.T. Rebelo, 1993. Transitional dynamics and economic growth in the neo-classical growth model. American Economic Review, 83, 908-931.
Ramsey, F., 1928. A mathematical theory of savings. Economic Journal, 38, 543-559.
Solow, R.M., 1956. A contribution to the theory of economic growth. Quarterly Journal of Economics, 70, 65-94.
Swan, T.W., 1956. Economic growth and capital accumulation. Economic Record, 32, 334-361.
Endogenous Growth Models I: Physical Capital Accumulation
Barro and Sala-i-Martin: Ch. 4.
Barro, R.G., 1990. Government spending in a simple model of endogenous growth. Journal of Political Economy, 98, 103-125.
Barro, R.G. and X. Sala-i-Martin, 1992. Public finance in models of economic growth. Review of Economic Studies, 59, 645-661.
Jones, L.E. and R.E. Manuelli, 1990. A convex model of equilibrium growth: theory and policy implications. Journal of Political Economy, 98, 1008-1038.
Romer, P.M., 1986. Increasing returns and long-run growth. Journal of Political Economy, 94, 1002-1037.
Endogenous Growth Models II: Human Capital Accumulation
Barro and Sala-i-Martin: Chs. 6,7.
King, R.G. and S.T. Rebelo, 1990. Public policy and economic growth: developing neo-classical implications. Journal of Political Economy, 98, 126-150.
Lucas, R.E., 1988. On the mechanics of economic development. Journal of Monetary Economics, 22, 3-42.
Mulligan, C.B. and X. Sala-i-Martin, 1993. Transitional dynamics in two sector models of endogenous growth. Quarterly Journal of Economics, 108, 737-773.
Rebelo, S.T., 1991. Long-run policy analysis and long-run growth. Journal of Political Economy, 99, 500-521.
Uzawa, H., 1965. Optimal technical change in an aggregative model of economic growth. International Economic Review, 6, 18-31.
Endogenous Growth Models III: Research and Development
Barro and Sala-i-Martin: Chs. 8,9.
Grossman, G.M. and E. Helpman, 1989. Product development and international trade. Journal of Political Economy, 97, 1261-1283.
Grossman, G.M. and E. Helpman, 1991. Quality ladders in the theory of growth. Review of Economic Studies, 58, 557-586.
Rivera-Batiz, C.A. and P.M. Romer, 1991. Economic integration and endogenous technological change. Quarterly Journal of Economics, 106, 551-555.
Rivera-Batiz, C.A. and P.M. Romer, 1991. International trade with endogenous technological change. European Economic Review, 35, 971-1004.
Romer, P.M., 1987. Growth based on increasing returns due to specialisation. American Economic Review, 77, 56-62.
Growth and Income Distribution
Aghion, P. and P. Bolton, 1997. A theory of trickle-down growth and development. Review of Economic Studies, 64, 151-172.
Alesina, A. and D. Rodrik, 1994. Distributive policies and economic growth. Quarterly Journal of Economics, 109, 465 - 490.
Banerjee, A.V. and A.F. Newman, 1993. Occupational choice and the process of development. Journal of Political Economy, 101, 274-298.
Galor, O. and J. Zeira, 1993. Income distribution and macroeconomics. Review of Economic Studies, 60, 35 - 52.
Gloom, G. and B. Ranikumar, 1992. Public versus private investment in human capital: endogenous groth and income inequality. Journal of Political Economy, 100, 818 - 834.
Perotti, R., 1993. Political equilibrium, income distribution and growth. Review of Economic Studies, 60, 4, October, 75
Teaching and learning methods
Lectures and tutorials
25% Mid term test
Basic text: Barro, R.J. and X. Sala-i-Martin, 1995. Economic Growth, McGraw-Hill.
|Scheduled activity hours|
|Independent study hours|
|Mohammad Haque||Unit coordinator|
Students must have taken Econ60111/ECON60411 Econ60081/ECON60811
Lecture - Thursday 2-4pm,
Tutorial - Monday 2-3pm.