Economic Growth

Recommended Prerequisites

Not applicable.

Learning Outcomes

1. Understand different models of economic growth. Apply the different models of economic growth in determining the equilibrium economic growth rate. Demonstrate analytically, for each growth model, which is the engine of growth. Demonstrate analytically how each model obtains a constant marginal productivity of capital.

2. Compare and criticize the various models studied. Select appropriate models depending on the topics under discussion.

3. Estimate economic growth regressions using several alternative econometric methods and data structures. Identify, for several testable hypothesis, the most adequate econometric model and data structure.

4. Test for absolute and conditional alpha convergence and for sigma convergence in per capita GDP across countries. Perform growth accounting exercises.

Work Placement(s)

No

Syllabus

1. Economic Growth Models

1.1. Solow (1956) Model

1.2. AK (1990) Model

1.3. Romer (1990) Model

1.4. Lucas (1988) Model

1.5. Grossman &Helpman (1990) Model

1.6. Aghion&Howitt (1992) Model

1.7. Comparative Analysis of the growth models discussed

 

2. Growth Econometrics

2.1. Some stylized facts

2.2. Cross country growth regressions

2.3. The convergence hypothesis

2.4. Panel data growth regressions

2.5. Growth accounting

Assessment Methods

Evaluation
Final test on chapter 1: 50.0%
Individual essay, which empirically analyzes a topic mentioned in the curricular unit:: 50.0%

Bibliography

Barro, R.J. and Sala-i-Martin, X. (2004), Economic Growth, 2nd ed., MIT Press, Cambridge, MA.

Caselli (2005), “Accounting for cross-country income differences.” In Aghion, P. and S. Durlauf, eds., Handbook of Economic

Growth, Vol. 1A, Elsevier North-Holland, pp. 679-741.

Durlauf, S., P. Johnson and J. Temple (2005), “Growth econometrics.” In Aghion, P. and S. Durlauf, eds., Handbook of Economic Growth, Vol. 1A, Elsevier North-Holland, pp. 555-677.

Thompson, M.J. (2008), Generating Economic Growth: An Analytical Survey. The Open Economics Journal, 1: 25-36.

Ao longo das aulas será indicada a bibliografia específica para cada capítulo do programa./ In each class the bibliography specific to each chapter will be listed.