Economic Growth Theory - at MUNI

• Main textbook(s):


Barro, R., & Sala-i-Martin, X. (2004). Economic Growth, 2nd ed. MIT Press. or


Barro, R., & Sala-i-Martin, X. (1995). Economic Growth, 1st ed. McGraw-Hill.



• Main articles:


Grossman, G., M., & Helpman, E. (1991). Quality ladders in the theory of growth. The Review of Economic Studies, 58(1), 43-61.
Jones, I., C. (1995). R&D-based models of economic growth. The Journal of Political Economy, 103(4), 759-784.
Lucas, R., E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22, 3-42.
Ramsey, F., P. (1928). A mathematical theory of saving. The Economic Journal, 38(152), 543-559.
Romer, M., P. (1986). Increasing returns and long-run growth. The Journal of Political Economy, 94(5), 1002-1037.
Romer, M., P. (1990). Endogenous technological change. The Journal of Political Economy, 98(5), 71-102.
Smulders, S., & van de Klundert, T. (1995). Imperfect competition, concentration and growth with firm-specific R&D. European Economic Review, 39, 139-160.
Solow, R., M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65-94.


• Recommended textbooks and readings:


Acemoglou, D. (2009). Introduction to Modern Economic Growth. Princeton University Press.
Aghion, P., & Howitt, P. (1998). Endogenous Growth Theory. MIT Press.
Chiang, A., E. (1992). Elements of dynamic optimization, 1st ed. McGraw-Hill.

Course information

1. The classes start on 08.04.2013 and end on 06.05.2013
2. There are three blocks of classes: Block 1 - 08.04.2013 and 15.04.2013; Block 2 - 19.04.2013 and 22.04.2013; Block 3 - 29.04.2013 and 06.05.2013
3. Time schedule: 2 classes in each day of each block; 1st class is from 11:00 to 12:30, 2nd class is from 13:30 to 15:00.
4. Office hours: by appointment
5. Exams: end-term exam only
6. Date, time and place of end-term exam TBA
7. There are two homeworks; currently, 1st is scheduled on 19.04.2013 with a deadline 29.04.2013; 2nd is scheduled on 29.04.2013 with a deadline 08.04.2013
8. I will distribute lecture notes for certain parts of the course. These notes will cover the main points of the respective lectures and part of the algebra
9. I expect you to be familiar with modern macroeconomic theory and continuous time dynamic optimization algorithms (Hamiltonian)
10. I have complied notes on continuous time optimal control (Hamiltonian). Please find them here.
11. Prior to classes please check the first and second welfare theorems and their implications for the cases when there are externalities and/or monopolists in the economy. A relatively nice microeconomic reference with pure exchange economy can be found here.
12. I have uploaded my handouts for the course. Please find them here.


10.04


13. On 19.04 class 1 starts at 12:30. Class 2 starts at 14:15.


11.04


14. Our end-term exams have been set. Please start registering. The first option is on 16.05 (Thursday) from 11:00 to 13:00 in the meeting room (3rd floor). The second option (together with retakes from 1st option) is on 22.05 (Wednesday) from 11:00 to 13:00 in semiar room S6. The third option (together with retakes from 1st or 2nd options) is on 27.05 (Monday) from 11:00 to 13:00 in seminar room S6.


19.04


15. I have uploaded the setup of the homework assignment 1. Please find it here. This homework assignment is worth 15 points out of total 100. The deadline is on 29.04 at 11:00. Bring your solutions to the class. You can work in groups of maximum 3 people. If you are going to submit handwritten text, please make sure that it is easily readable.


23.04


16. I have updated the Lucas (1988) part of my handouts. Please find the updated handouts here.


29.04


17. The deadline of the first homework assignment is extended till 06.05. Please bring it to our class on 06.05. There will be no other homework assignment. I will decide how to allocate the 5 points from that assignment.


29.04


18. I have uploaded solutions to HW 1. You can find it here.
19. Since we were not quick enough to cover more topics I did not post second homework assignment. You will earn the points of this assignment from the exam.
20. During our classes, we have covered Chapters 1-6 from Barro & Sala-i-Martin (2004).


13.05


21. Some clarifications regarding the materials we have covered and the exam:
    1. We have (not fully) covered Chapters 1-6 from Barro & Sala-i-Martin (2004) [Chapter 1: Growth Models with Exogenous Saving Rates (the Solow–Swan Model); Chapter 2: Growth Models with Consumer Optimization (the Ramsey Model); Chapter 3: Extensions of the Ramsey Growth Model; Chapter 4: One-Sector Models of Endogenous Growth; Chapter 5: Two-Sector Models of Endogenous Growth (with Special Attention to the Role of Human Capital); Chapter 6: Technological Change: Models with an Expanding Variety of Products].
    2. At the exam there you will receive several (short) problems that will require knowledge of the subject, some calculus, and intuition (e.g., I might explain a situation (offer an example) and ask you to elaborate on differences in inference regarding that situation between neoclassical and endogenous growth models). You will receive also an exericise where you will need to solve for allocations and growth rates in a model, explain your results, and provide (at least) intution for how results change under certain departures from the setup.

    3. The exam will take approimately 2 hours.

• Grading: Out of 100
• Homeworks: 20
• Class participation: 3
• End-term exam: 77 (end-term exam is cumulative)

• Syllabus

• Lectures and Reading: