Course Title  Economic Growth  
Lecturer  Kudebayeva Alma  
Institution  The Kazakh State National University  
Country  Kazakhstan 
The purpose of the course The course "Economic growth" is a compulsory course at the Economic faculty. The main goal of this course is to explain and investigate basic mathematical models of economic growth and reveal advantages and lacks of this or that model. The list of necessary previous courses Mathematical methods in economics, microeconomics, macroeconomics, econometrics. Contents of the Course Module 1 Introduction The importance of economic growth. Empirical regularities of economic growth. A brief history of modern growth theory. Lectures 2 hours Module 2 Growth models with exogenous saving rates (The SolowSwan model) The neoclassical production function. The fundamental dynamic equation for the capital stock. The steady state. The golden rule of capital accumulation and dynamic inefficiency. Transitional dynamics. An example: CobbDouglas Technology. The technological progress. The Solow Swan model with labor augmenting technological progress. Models of endogenous growth: AK model, The Leontief production function and the HarrodDomar controversy, growth models with Poverty Traps. Lectures 8 hours Independent work of the student 2 hours Seminars 6 hours Module 3 Growth models with consumer optimization (The Ramsey model) The households. First order conditions. Euler equation. The consumption function. Firms. Equilibrium. Alternative environments. The Steady state. The phase diagram. The Shape of the stable arm. Behavior of the Saving Rate. The paths of the capital stock and output. Lectures4 hours Seminars 4hours Module 4 Open economy An openeconomy version of the Ramsey model. Behaviour of a small economys capital stock and output. Behaviour of a small economys consumption and assets. The world equilibrium. Economic growth in model with finite horizons. The finitehorizon model of a closed economy. The finite horizon model of an open economy. Adjustment costs for investment. Overlapping generations models. Lectures 6 hours Independent work of the student 2 hours Seminars 6 hours Module 5 Onesector models of endogenous growth The AK model: behavior of households and firms, equilibrium, determinants of the growth rate. A onesector model with physical and human capital. Models with learningby doing and knowledge spillovers: technology, equilibrium, pareto nonoptimality and policy implications, Cobb Douglas example. Scale effects. The publicgoods model of productive government services: decentralized economy, social planners problem, scale effects. The congestion model of productive government services. Lectures 6 hours Independent work of the student 2 hours Seminars 6 hours Module 6 Twosector models of endogenous growth. The constraint of nonnegative Gross investment. Different technologies for production: the model with two sectors of production, UzawaLucas model, generalized UzawaLucas model, model with reversed factor intensities. Conditions for endogenous growth. Lectures 6 hours Independent work of the student 2 hours Seminars 6 hours Module 7 The diffusion of technology A leaderfollower model. Behavior of innovators in the leading country. Behavior of imitators in the follower country. Variations in the cost of imitation. Mutual invention and imitation. The role of foreign investment in the process of technological diffusion. Lectures 4 hours Seminars 4 hours Module 7 Empirical research on economic growth Review of panel data for countries. Growth accounting. Measuring input shares and the growth rates of inputs. Empirical analysis of regional data sets. Two main concepts of convergence. Convergence across data of Kazakhstan. Use of computer package of the applied programs on econometrics for empirical investigation. Seminars 2 hours Laboratory works 6 hours Tasks for independent work of the student
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