Course description
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. This effort has produced 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 the economic growth, why some countries are growing while other are not, why some countries ended up being rich while many others remain poor, how globalization influences growth prospects of countries, and how historical, cultural, religious, institutional, geographic and other non-economic factors (dis)stimulate economic growth.
The course also provides a brief discussion of the place of the discussions of growth in economic discourse, of ethical and value judgments related to the issues of economic growth and technical progress, and if growth does make us happier.
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 main facts about economic growth including the difference of growth rates between different countries;
- critically discuss these models and identify their limitations and fallings to account 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 of ethical discussions and value judgments related to economic growth and technological progress as well as relations between economic growth and subjective well-being.
Prerequisites:
This course has no prerequisites. However, some basic mathematics, algebra, and graphing will be used.
Syllabus
- Economic growth: differences between countries
- Income distribution across the world and global income inequality
- Factors affecting economic growth:
- Physical capital
- Population growth
- Human capital
- Technological progress
- Growth accounting
- Non-economic factors affecting economic growth:
- Natural resources
- Environmental issues
- Culture, religion and geography
- 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
Evaluation
Presentations and short summaries during the course 20%
Seminar participation and home assignments 25%
Mid-term exam 25%
Final exam 30%
- Presentations during the course: the students will be provided with suggested additional readings for presentations (about 15-20 minutes) 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. One of the available options is to read jointly throughout the course one of the latest relevant books (examples include: Thomas Piketti. Capital in the Twenty-First Century or Daron Acemogly and James Robinson Why Nations Fail: the Origins of Power, Prosperity and Poverty). Presentations should be followed by brief written summaries shared with all the class.
- 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 grasp the main concepts and models discussed.
- Mid-term exam: a multiple-choice test intended to check the understanding and progress in the middle of the course.
- Final exam will consist of two parts: multiple-choice questions and a number of questions covering the material of the whole course.
Reading
Suggested literature:
Core text:
- David N. Weil. 2013. Economic Growth. Pearsons, 3rd edition.
Additional reading
- William Easterly. 2001. The Elusive Quest for Growth. MIT Press.
- Elhanan Helpman. 2004. The Mystery of Economic Growth. Harvard University Press.
- Michael Spence. 2010. The next convergence. Picador.
- Thomas Piketti. 2014. Capital in the Twenty-First Century. Harvard University Press.
- Tomas Sedlacek. 2011. Economics of Good and Evil: The Quest for Economic Meaning from Gilgamesh to Wall Street. Oxford University Press.
- Janos Kornai. 2013. Dynamism, Rivalry, and the Surplus Economy: Two Essays on the Nature of Capitalism. Oxford University Press.
- Daron Acemogly and James Robinson. 2013. Why Nations Fail: the Origins of Power, Prosperity and Poverty. Crown Business.
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Further readings will be suggested during classes. Obligatory readings will vary between 40 and 50 pages per week.
