DSE-3: Economic Growth, 2021

Course Completion, 28th May, 2021.

Syllabus

1. Introductory Growth Models

Harrod Model of Growth – Domar Model of Growth – The Harrod – Domar model – assumptions – implications – actual, warranted and natural rate of growth – knife edge instability problem and its economic implication – causes behind it – properties of warranted rate of growth - Comparison of Harrod and Domar Growth Models .

Lecture Note-1 Introduction to Growth Theory

a. Harrod Model - SS Sir Notes

b. Harrod-Domar Model - Reading 1, Harrod model Notes

c. Domar Model - Reading 2 , Notes

d. Harrod Domar Model - Reading 3 , Notes

e. Question Set-1

Class task-1 Submission - 9th May,2021

Role of saving in H-D model and How Solow solve Harrod instability problem

2. Exogenous Growth Model

Solow Model – Absolute and Conditional Convergence – Steady State – Golden Rule of Capital Accumulation – Transition of the Golden Rule Steady State. - Constant Population growth and its impact on Steady State, Growth Accounting and Solow Residual , Introducing Constant Technological Progress in the Solow Model , Measuring Growth of Endogenous variables at Steady State

Reading : (Economic Growth 1 ) , (Economic Growth 2 ) shashi1234

1. Background for Solow Model - Homogeneous function, Neo-Classical Production function, Production Concept. 2.Revisiting development of Solow Model with no population growth and no technical progress and looking at steady-state with motion in the central equation to look at growth in an endogenous variable. Also, we look at the impact of depreciation on steady-state. 3.Effect of Saving at Steady State- Assuming no Population Growth, no Technical Progress we will look at the impact of Change in Saving on Steady State. Measuring Growth of Endogenous variables at Steady State 4. No Population Growth and no Technical Progress we look at the Golden rule of capital accumulation, Transition of the Golden Rule Steady State. 5. Growth Accounting and Solow Residual. 6. Solow model with Constant Population growth and its impact on Steady State. - AVAILABLE IN MASTER COMPILE VIDEO PART-1 - LINK

Absolute and Conditional Convergence , Introducing Constant Technological Progress in the Solow Model , Measuring Growth of Endogenous variables at Steady State - Youtube Video Link Part-2 Link

Class task-2

Class task-2 Submission link (30th May,2021)

3. Endogenous Growth Model

• Basic AK Model

Introduction to Endogeneous Growth Theory

Basic AK Model - Lecture notes

Short Notes of AK Model

Video lecture - Youtube link

Class task 3