Couse started from 10th Feb, 2024
Course Completed on 1st June, 2024
Question paper-2019 , 2021 , 2022, 2023
Internal Exam submission Link - 21/05/24
Content/ Syllabus: Unit wise course content distribution
1 .Harrod-Domar Model
Harrod Model of Growth– Assumptions – Implication of Constant Capital-Output ratio – Actual, Warranted and Natural rate of growth –Properties of Warranted growth rate– stable/sustainable equilibrium – Steady State- Interaction of G, Gw and Gn – knife edge Equilibrium; instability problem – The Domar Model of Growth – Comparison between Harrod Model and Domar Model – Limitations – How Solow Solved Instability Problem in the Harrod-Domar Model?
Lecture Note-1 Introduction to Growth Theory- Notes
Lecture Note-2 Harrod Model SS Reading/Notes, Harrod Model - Notes 2
Harrod Model Part 1/2 - Video Harrod Model Part 2/2 - Video,
Role of saving in H-D model and How Solow solve Harrod instability problem -Video
Lecture 3 - Domar Model - Reading Notes
2 . Solow Growth Model
Preliminaries- Homogeneous Function – Production concept – Return to Scale – Neo-Classical Production Function – Method to calculate growth rate of variables.
Model 1. Solow Model with no Population growth and no Technological progress – Introduction – Assumptions – Accumulation of Capital – Growth in the capital stock and Steady State– Growth of Endogenous variables at Steady State – Effect of Saving at Steady State; Growth Effect vs Level Effect –Implication of alternative Saving rate – Impact of higher Depreciation at Steady State – The Golden Rule level of Capital Accumulation – Transition to the Golden Rule Steady State.
Model 2. Solow Model with Constant Population growth and no Technological progress – Introduction – Assumptions – Accumulation of Capital – Growth in the capital stock and Steady State– Growth of Endogenous variables at Steady State – Comparison of Model 1 & 2 – Effect of Saving at Steady State; Growth Effect vs Level Effect – The Golden Rule level of Capital Accumulation – Transition to the Golden Rule – Impact of change in Population growth at Steady State.
Model 3. Solow Model with Constant population growth and Constant technological progress– Introduction– Assumptions – Accumulation of Capital – Growth in the capital stock and Steady State– Growth of Endogenous variables at Steady State – Comparison of Model 1,2 & 3 – Effect of Saving at Steady State; Growth Effect vs Level Effect – The Golden Rule level of Capital Accumulation – Transition to the Golden Rule.
Growth Accounting and Solow Residual, Absolute and Conditional Convergence.
3. Endogenous Growth Theory
Introduction to Endogenous Growth Theory– AK Model
Introduction to Endogeneous Growth Theory, Basic AK Model - Notes
4. Trade and Economic Growth
Trade as an engine of Growth: Different Perspective and Critical Evaluation – Terms of trade and Economic Development; Prebisch-Singer Thesis – Imports substitution Vs export promotion; Merits and Demerits, Comparisons.
1. Lecture-1 : Trade As An Engine Of Growth - different Perspective- Notes , Video
2. Lecture-2 Trade As An Engine Of Growth; Critical evaluation - Notes, Video
3. Lecture -3 Prebisch Singer Thesis - Reading, Class Notes
4. Lecture 4 PST; Critical evaluation - Notes
5. Import Substitution vs Export promotion - Reading , Notes 1, Notes2
Economics of Growth - Course learning Outcome
This course will introduce students to the growth theory in economics where they will learn the formal models that are dynamic in nature. The basic framework of growth theory revolves around the understanding that economic growth is the process of accumulation of capital. This course covers two framework of exogenous growth theory –keynesian growth theory which is recognized as harrod-domar model and neo-classical growth theory which is well-known as solow-swan model. Also in the course, endogenous growth theory (basic AK model) and the debate on the relevance of Trade as an engine of growth and development with emphasis on import substitution versus export promotion policies are discussed. This course provides an elementary introduction to growth theory where students are introduce with the requirement of long-run equilibrium called steady state, when the economy is growing. In this course students will learn the different economic thought on important factors that determine long term growth. In the harrod-domar model long term equilibrium (Steady state condition where all variables are growing at the same rate) gives us a razor edge equilibrium and this arises due to constant capital output ratio. In this model growth can be increase permanently by increasing saving. Solow and Swan using neo-classical framework solve the instability problem in the harrod-domar model by considering capital output ratio to be endogenous. In the solow model factors of production demonstrate positive and diminishing return. However in the solow model increase in saving has only level effect and no growth effect. The argument of solow about long term growth depends on technical progress which is exogenous and so depends on non-economic factors. This argument remains unsatisfactory as no policy decision can be made to influence economics growth. Thus step were taken to introduce endogenous technical progress, in this regard first attempt in the form of AK Model was made by Frankel in 1962 by considering capital to be both in physical and human capital thus taking care of diminishing return to capital. In this basic version of endogenous growth theory economic growth can be increase permanently by increasing saving rate. Students in this course also learn about various models and debate related to whether trade can be considered as an engine of growth and development or not. This paper, although sophisticated students on large numbers chose it to understand the dynamics nature of economics. This course will form the foundation for students for advance courses in macroeconomics or growth theory at master and Ph.D. level
References:
1. Barro, Robert and Xavier Sala-i-Martin: Economic Growth. (MIT Press)
2. David N Weil: Economic Growth (Prentice Hall)
3. Todaro and Smith: Economic Development (Pearson Education):
4. Thirwall A.P: Growth and Development (Palgrave McMillan):
5. Felix Raj: Contemporary Development Economics: From Adam Smith to Amartya Sen
Internal Evaluation
1. Class Tasks/Homework and Presentation - 04 marks
1 marks each x 4 units = 4 marks
2. Subjective Exam - 06 marks
Internal Exam carries 06 marks
3. Attendance - 04 marks (Incentive)
attending less than 60 % - 0 marks
attending at least 60% but less than 75% - 2 marks
Students with over 75% but less than 90% attendance - 3 marks
With 90% attendance and more - 4 marks
End Semester Examination: 40 Marks
The end semester examination shall be conducted based on written test.
Question Pattern: Students have to answer 01 question carrying 10 marks out of given 03 questions
; 03 questions carrying 5 marks each out of given 05 questions;.
05 questions carrying 2 marks each out of given 08 questions;
05 questions carrying 1 mark each out of given 08 questions.