Macroeconomic Theory 2: Economic Growth


Course Type: Undergraduate (2nd Year Core)

Course Description: This course introduces theories and empirics of economic growth

Mathematical Prerequisite: Calculus

Note 1: I do not take attendance. But, I give surprise quizzes in lieu of this

Note 2: FZ policy - A numerical grade below 40 out of 100 in the midterm exam, or not being present for at least two quizzes

Note 3: You are not allowed to use electronic devices (e.g., mobile phones, tablets, laptops, etc.) in class

Note 4: No appointment, no meeting. Some suggestion (click here)

Grades: Class Participation and Quizzes (20%), Midterm Exam (40%), Final Exam (40%)

Some Old Lecture Slides (The slides before 2016 are no longer relevant for the course):

Textbooks on Economic Dynamics (in Block Alphabetical Order):

*** Below are some textbook choices for self-reading. I recommend doing the reading (of your choice) in order of "Introductory", "Intermediate", "Advanced", and paper(s) ***

  • "Macroeconomics" by Olivier Blanchard (OB) (Introductory)

  • "Macroeconomics" by Wendy Carlin and David Soskice (WC-DS) (Introductory)

  • "Macroeconomics" by Gregory Mankiw (GM) (Introductory)

  • "Modern Macroeconomics" by Sanjay Chugh (SC) (Intermediate)

  • "Intermediate Macroeconomics" by Julio Garin, Robert Lester, and Eric Sims (JG-RL-ES) (click here) (Intermediate)

  • "Introduction to Economic Growth" by Charles Jones and Dietrich Vollrath (CJ-DV) (Intermediate)

  • "Economic Growth" by David Weil (DW) (Intermediate)

  • "Introduction to Modern Economic Growth" by Daron Acemoglu (DA) (Advanced)

  • "Economics of Growth" by Philippe Aghion and Peter Howitt (PA-PH) (Advanced)

  • "Economic Growth" by Robert Barro and Xavier Sala-i-Martin (RB-XS) (Advanced)

  • "Macroeconomic Theory" by Jean-Pascal Benassy (JB) (Advanced)

  • "Lectures on Macroeconomics" by Olivier Blanchard and Stanely Fischer (OB-SF) (Advanced)

  • "Foundations of Modern Macroeconomics" by Ben Heijdra (BH) (Advanced)

  • "Recursive Macroeconomic Theory" by Lars Ljungqvist and Thomas Sargent (LL-TS) (Advanced)

  • "Advanced Macroeconomics" by David Romer (DR) (Advanced)

  • "Introducing Advanced Macroeconomics" by Peter Sorensen and Hans Whitta-Jacobsen (PS-HW) (Advanced)

  • "Macroeconomic Theory" by Michael Wickens (MW) (Advanced)

Textbooks on Dynamic Optimization (in Alphabetical Order):

*** Below are some textbook choices for self-reading if you are interested in theory and applications of dynamic optimization ***

  • "Dynamic Economics" by Jerome Adda and Russell Cooper

  • "Foundations of Dynamic Economic Analysis" by Michael Caputo (click here)

  • "Elements of Dynamic Optimization" by Alpha Chiang

  • "Analysis and Control of Dynamic Economic Systems" by Gregory Chow

  • "Dynamic Economics: Optimization by the Lagrange Method" by Gregory Chow

  • "Mathematical Methods and Models for Economists" by Angel de la Fuente

  • "Optimization in Economic Theory" by Avinash Dixit

  • "Economic Dynamics" by Giancarlo Gandolfo

  • "Mathematical Optimization and Economic Theory" by Michael Intriligator

  • "Dynamic Optimization" by Morton Kamien and Nancy Schwartz

  • "Economic Dynamics in Discrete Time" by Jianjun Miao

  • "Economic Dynamics: Theory and Computation" by John Stachurski

  • "Recursive Methods in Economic Dynamics" by Nancy Stokey, Robert Lucas Jr., and Edward Prescott

  • "Further Mathematics for Economic Analysis" by Knut Sydsaeter and Peter Hammond

  • "A First Course in Optimization Theory" by Rangarajan Sundaram

  • "Analytical Methods in Economics" by Akira Takayama

  • "Mathematical Economics" by Akira Takayama

Course Contents:

1. Growth Facts

OB Chapter 10

WC-DS Chapter 8

GM Chapter 7

JG-RL-ES Chapter 4

CJ-DV Chapter 1

DW Chapter 1

DA Chapter 1

PA-PH Introduction

RB-XS Introduction

DR Chapter 1

PS-HW Chapter 2

Paper:

Jones, C.I. (2016) "The Facts of Economic Growth," Handbook of Macro

2. Neoclassical Growth Models

OB Chapters 11 an 12

WC-DS Chapter 8

GM Chapters 7 and 8

SC Chapters 25 and 26

JG-RL-ES Chapters 5 and 6

CJ-DV Chapter 2

DW Chapter 3

JB Chapters 1, 4, 7, and 8

DA Chapters 2, 8, and 9

PA-PH Chapter 1

RB-XS Chapters 1, 2, and 3

OB-SF Chapter 2

BH Chapters 12 and 13

LL-TS Chapters 7, 8, 9, 10, and 15

DR Chapters 1 and 2

PS-HW Chapters 3, 5, and 6

MW Chapters 2, 3, 4, 5, and 6

Paper:

Mankiw, N.G., Romer, D., and Weil, D.N. (1992) "A Contribution to the Empirics of Economic Growth," QJE

3. Growth Empirics

JG-RL-ES Chapter 7

CJ-DV Chapter 3

DA Chapter 3

RB-XS Chapters 11 and 12

DR Chapters 1 and 4

PS-HW Chapters 5 and 6

Paper:

Mankiw, N.G., Romer, D., and Weil, D.N. (1992) "A Contribution to the Empirics of Economic Growth," QJE

4. Endogenous Growth Models

OB Chapters 11 an 12

WC-DS Chapter 8

GM Chapter 8

CJ-DV Chapters 5 and 9

JB Chapter 9

DA Chapters 11, 12, 13, and 14

PA-PH Chapters 2, 3, and 4

RB-XS Chapters 4, 5, 6, and 7

BH Chapter 14

LL-TS Chapter 15

DR Chapter 3

PS-HW Chapters 8, 9, and 10

MW Chapter 3

Papers:

Romer, P.M. (1986) "Increasing Returns and Long-run Growth," JPE

Romer, P.M. (1990) "Endogenous Technological Change," JPE

Grossman, G.M. and Helpman, E. (1991) "Quality Ladders in the Theory of Growth," RESTUD

Aghion, P. and Howitt, P. (1992) "A Model of Growth through Creative Destruction," ECTA