| SES # | TOPICS | READINGS |
|---|---|---|
| I. An Introduction to Growth Models and Growth Facts | ||
| L1-L2 | Syllabus, Introduction Economic Growth and Economic Development The Solow Growth Model The Solow Growth Model and the Data | Required Readings Acemoglu, D. Introduction to Modern Economic Growth, 2007, chapters 1-3. Barro, R. J., and X. Sala-i-Martin. Economic Growth, 1995, chapters 1 and 12. Recommended Readings
Hall, R., and C. Jones. "Why Do Some Countries Produce So Much More Output than Others?" Quarterly Journal of Economics 114 (1999): 83-116. Jones, C. "On the Evolution of the World Income Distribution." Journal of Economic Perspectives 11 (1997): 19-36.
Klenow, P., and M. Bils. "Does Schooling Cause Growth?" American Economic Review 90 (2000): 1160-1183. Mankiw, N. G., D. Romer, and D. Weil. "A Contribution to the Empirics of Economic Growth." Quarterly Journal of Economics 107 (1992): 401-437. Solow, R. M. "A Contribution to the Theory of Economic Growth." Quarterly Journal of Economics 70 (1956): 65-94.
|
| R1 | Empirics of Economic Growth (PDF) (Courtesy of Suman Basu. Used with permission.) | |
| II. The Neoclassical Growth Model | ||
| L3-L6 | Foundations of Neoclassical Growth Dynamic Programming and Optimal Growth Review of the Theory of Optimal Control The Neoclassical Growth Model | Required Readings Acemoglu, D. Introduction to Modern Economic Growth, 2007, chapters 5-8. Barro, R. J., and X. Sala-i-Martin. Economic Growth, 1995, chapters 2-3. Recommended Readings
Cass, D. "Optimum Growth in an Aggregative Model of Capital Accumulation: A Turnpike Theorem." Econometrica 34 (1966): 833-850. Lucas, R. E., Jr. "Why Doesn't Capital Flow from Rich to Poor Countries?" American Economic Review 80 (1990): 92-96. Ramsey, F. P. "A Mathematical Theory of Saving." Economic Journal 38 (1928): 543-559. Skiba, A. K. "Optimal Growth with a Convex-Concave Production Function." Econometrica 46 (1978): 527-539. |
| R2 | The Neoclassical Growth Model | |
| III. Using the Neoclassical Growth Model Beyond Growth: Asset Pricing, Public Finance, Overlapping Generations | ||
| L7-L8 | Growth with Overlapping Generations | Required Readings Acemoglu, D. Introduction to Modern Economic Growth, chapter 9. Atkeson, A., V. V. Chari, and P. Kehoe. "Taxing Capital Income: A Bad Idea." Federal Reserve Bank of Minneapolis Quarterly Review 23, no. 3 (Summer 1999): 3-17. Lucas, R. E., Jr. "Asset Prices in an Exchange Economy." Econometrica 46 (1978): 1429-1445. Barro, R. J. "Are Government Bonds Net Wealth?" Journal of Political Economy 82 (1974): 1095-1117. ———. "On the Determination of the Public Debt." Journal of Political Economy 87 (1979): 940-71. Blanchard, O. "Debt, Deficits and Finite Horizons." Journal of Political Economy 93 (1985): 223-247. Recommended Readings Abel, A., and O. Blanchard. "An Intertemporal Equilibrium Model of Saving and Investment." Econometrica 51 (1983): 675-692. Barro, R. J., and X. Sala-i-Martin. Economic Growth, chapter 3 and appendix to chapter 3. Barro, R. "Ramsey Meets Laibson in the Neoclassical Growth Model." Quarterly Journal of Economics 114 (1999): 1125-1152. Baxter, M., and R. King. "Fiscal Policy in General Equilibrium." American Economic Review 78 (1988): 315-334.
Chamley, C. "Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives." Econometrica 54 (1986): 607-622. Chari, V. V., and P. Kehoe. "Optimal Fiscal and Monetary Policy." National Bureau of Economic Research Working Paper no. 6891, 1999, pp. 1-119. Diamond, P. "National Debt in a Neoclassical Growth Model." American Economic Review 55 (1965): 1126-1150. Kydland, F., and E. C. Prescott. "Time to Build and Aggregate Fluctuations." Econometrica 50 (1982): 1345-1370. Lucas, R. E, Jr., and N. L. Stokey. "Optimal Fiscal and Monetary Policy in an Economy without Capital." Journal of Monetary Economics 12 (1983): 55-93. Modigliani, F. "Life Cycle, Individual Thrift, and the Wealth of Nations." American Economic Review 76 (1986): 297-313. Samuelson, P. A. "An Exact Consumption Loan Model of Interest with and without the Social Contrivance of Money." Journal of Political Economy 1958 (1958): 467-482. Sidrausky, M. "Rational Choice and Patterns of Growth in a Monetary Economy." American Economic Review 77 (1967): 534-544. |
| R3 | Applications of the Neoclassical Growth Model | |
| IV. Endogenous Growth I: AK, Spillovers, Human Capital | ||
| L9-L10 | Human Capital and Economic Growth First-Generation Models of Endogenous Growth | Required Readings Acemoglu, D. Introduction to Modern Economic Growth, 2007, chapters 10-11. Barro, R. J., and X. Sala-i-Martin. Economic Growth, 1995, chapters 4-5. Recommended Readings
Barro, R. J. "Government Spending in a Simple Model of Endogenous Growth." Journal of Political Economy 98 (1990): S103-S125.
Lucas, R. E., Jr. "Making a Miracle." Econometrica 61 (1993): 251-272. ———. "On the Mechanics of Economic Development." Journal of Monetary Economics 22 (1988): 3-42. Jones, L. and R. Manuelli. "A Convex Model of Equilibrium Growth." Journal of Political Economy 98 (1990): 1008-1038. Rebelo, S. "Long-Run Policy Analysis and Growth." Journal of Political Economy 99 (1991): 500-521. Romer, P. M. "Increasing Returns and Long-Run Growth." Journal of Political Economy 94 (1986): S1002-S1037. Young, A. "Invention and Bounded Learning by Doing." Journal of Political Economy 101 (1993): 443-472. |
| R4 | Optimization Methods (PDF) (Courtesy of Suman Basu. Used with permission.) | |
| V. Endogenous Growth II: R&D, Varieties vs. Quality, Directed Technological Change | ||
| L11-L12 | Expanding Variety Models Models of Competitive Innovations Directed Technological Change | Required Readings Acemoglu, D. Introduction to Modern Economic Growth, 2007, chapters 13-15. Aghion, P., and P. Howitt. "A Model of Growth through Creative Destruction." Econometrica 60 (1992), 323-351. Barro, R. J., and X. Sala-i-Martin. Economic Growth, 1995, chapters 6-7. Romer, P. M. "Endogenous Technological Change." Journal of Political Economy 98 (1990): 71-102. Recommended Readings Acemoglu, D. "Directed Technical Change." Review of Economic Studies 69 (2001): 781-810.
Barro, R., and X. Sala-i-Martin. "Public Finance in Models of Economic Growth." Review of Economic Studies 59 (1992): 645-662. Brezis, E., P. R. Krugman, and D. Tsiddon. "Leapfrogging in International Competition: A Theory of Cycles in National Technological Leadership." American Economic Review 83 (1993): 1211-1219. Grossman, G. M. and E. Helpman. "Quality Ladders in the Theory of Economic Growth." Review of Economic Studies 58 (1991): 43-61. Jones, C. "R&D-Based Models of Economic Growth." Journal of Political Economy 103 (1995): 759-784. Parente, S. L., and E. C. Prescott. "Barriers to Technology Adoption and Development." Journal of Political Economy 102 (1994): 298-321. |
| R5 | Expanding Variety Models (PDF) (Courtesy of Suman Basu. Used with permission.) | |
| L13 | Summary | |
Table of Contents
Study Materials
Readings
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Required Texts
Acemoglu, D. Introduction to Modern Economic Growth. Cambridge, MA: Massachusetts Institute of Technology, 2007.
Barro, R. J., and X. Sala-i-Martin. Economic Growth. New York, NY: McGraw-Hill, 1995. ISBN: 0070036977.
Readings by Session