S1515 Introduction to Economic Growth (Sustainable Development Sp. Track)

The process of economic growth and the sources of differences in economic performance across nations are some of the most interesting, important and challenging areas in modern social science. Economists have been thinking about economic growth since the days of Adam Smith. Their efforts have led to a better understanding of the sources of economic growth though many mysteries remain.
The purpose of this course is to introduce students to these major questions and to the theoretical tools necessary for studying them. Discussions of theories and models developed to analyze growth are placed in the context of the broad empirically observed patterns and historical processes underlying the current state of the world economy. This course discusses what determines economic growth, why some countries are growing while other are not, why some countries have ended up being rich while many others remain poor, how globalization influences countries' growth prospects, and how historical, cultural, religious, institutional, geographic and other non-economic factors stimulate or otherwise economic growth.
The course will also examine the place of discussions of growth in economic discourse, of ethical and value judgments related to the issues of economic growth and technical progress, and of whether growth makes us happier.
Presentations during the course: the students will be given additional suggested readings for short (about 15 minutes) presentations during the seminars. The list of topics for presentations will be presented at the beginning of the course, and additional readings will be suggested taking into account the specific preferences and interests of the students.
Seminar participation: active participation is essential. Be ready to answer questions and discuss assigned readings as well as material used in the classroom and to provide feedback on other students’ presentations.
Homework: several written assignments will be given during the course to assist students' grasp of the main concepts and models discussed.
Mid-term exam: a multiple-choice test intended to check students' understanding and progress in the middle of the course.
Final paper: students will be offered a tentative list of topics for the final paper. Specific topics and related literature will be discussed at the first seminars. Full guidelines will be provided at the beginning of the course. Expected length of the final paper is about 4000 words.
Final exam will consist of two parts: multiple-choice questions and several problems covering the material of the whole course.

Learning outcomes
By the end of this course, students should be able to:
• discuss the main empirical facts about economic growth;
• explain the main economic and non-economic factors affecting economic growth;
• use theoretical models for explaining the main facts about economic growth including the difference of growth rates between different countries;
• critically discuss these models and identify their limitations and failings in accounting for empirical facts;
• critically discuss the relation of economic growth to such global problems as environmental degradation, globalization, poverty and income inequality;
• summarize the main points treated in ethical discussions and value judgments related to economic growth and technological progress as well as relations between economic growth and subjective well-being.

Key topics
• Economic growth: differences between countries
• Income distribution across the world and global income inequality
• Factors affecting economic growth:
o Physical capital
o Population growth
o Human capital
o Technological progress
• Growth accounting
• Non-economic factors affecting economic growth:
o Natural resources
o Environmental issues
o Culture, religion and geography
o Institutions
• Globalization and growth
• Convergence hypothesis: do countries converge in terms of growth rates or incomes
• Economic growth, ethics and values
• Economic growth and happiness

Prerequisites
This course has no prerequisites. However, some basic mathematics, algebra, and graphing will be used.