Course Title | Theory and Empirics of Economic Growth | |
Lecturer | Alvar Kangur | |
Institution | Tallin Technical University | |
Country | Estonia |
I Introduction Living in the period of massive transitions and in economical sense "fascinating" events it may be hard to stop for a moment and take a broader look at the development of economies in long term. Indeed, the short-run fluctuations we observe practically every day have a relatively minor effect on nation’s living standards. Today, with significant advances in growth theory and availability of large databases, economists have realized that long-term fluctuations are at least as important as short-term changes. The intention of this course is to concentrate on the specific field of macroeconomics – economic growth. It reviews the evolution of theory of economic growth, starting from orthodox neoclassical models, advancing gradually towards "new growth theory" of technological change also allowing for other endogenous assumptions. In addition to theory key empirical regularities and findings are discussed and students are encouraged to use their obtained knowledge in computer-lab sessions. "Theory and Empirics of Economic Growth" is an optional course in MA curriculum, lasting for 8 weeks and 32 academic hours: 8 lectures (16 academic hours) and 8 seminars/computer labs (16 academic hours). In addition students are left with "independent work" and with intention to cover some essential literature. Students attending this course are expected to have pervaded mandatory intermediate macroeconomics and must have some basic knowledge in econometrics and mathematical methods.
II Objectives of the course a, Academic Aims General aims of the course are to provide the students with background of sources and theory of growth (exogenous as well as endogenous), and in this framework to discuss related real-world issues and apply theory to real data and processes observed in the world. Thus, in addition to the theoretical knowledge, students should be able to develop their practical skills and make use of mathematical methods learned in previous courses. b, Learning Outcomes After completing this course students should be able to:
III Course Detail a., Lecture Synopsis Lecture I. Introduction to economic growth.
Lecture II. Growth accounting. Neoclassical model of economic growth.
Lecture III. Hypotheses of convergence. Applications of neoclassical growth model.
Lecture IV. Ramsey model. Assumption of the open economy.
Lecture V. Theory of endogenous growth.
Lecture VI. Two-sector models of endogenous growth with broad measure of capital.
Lecture VII. Technological change.
Lecture VIII. Modifications of exogenous population and labor force. Conclusion.
b, Seminar Synopsis. Seminar I. Introductory seminar. In this seminar course syllabus will be explained and some required material distributed. Also the content of the first lecture will be discussed. Seminar II. Computer lab session. Students will be familiarized with available (econometric) software needed for further computer sessions. Some issues concerning orthodox growth theory are discussed and computation exercises on computers solved. Problems for discussion.
Seminar III. Convergence. Neoclassical growth theory and concepts of convergence are discussed in detail. Several basic working papers are covered. Problems for discussion.
Seminar IV. Computer lab session. Data on economic growth and regional data sets. Basic data used in growth modeling and some empirical results are described, also their consistence with theory discussed. Students test convergence predictions on the computers. Some aspects of Ramsey model are covered. Problems for discussion.
Seminar V. Endogenous growth theory. The basic principles of endogenous growth theory are discussed. Several topics for practical assignment will be proposed. Problems for discussion.
Seminar VI. Computer lab session. Students are expected to chose practical assignment what they will carry out through VI – VIII seminars. This can be done in small working groups. Problems for discussion.
Seminar VII. Computer lab session. Students continue work on practical assignments. Problems for discussion.
Seminar VIII. Computer lab session. Students compleate work on practical assignment and are expected to give short presentations on their work.
IV Assessment The course will end with a written examination, which comprises of two parts. The first part examines student’s knowledge of specific concepts and processes and consists of questions requiring short answers. Questions in the second part require longer explanations and may include graphical presentations. Student (group of students) will qualify for final examination after presenting and documenting their work on practical assignment.
V Reading list Required Readings
VI Teaching Methodology The course consists of 8 lectures, each followed by seminar/computer labs. In lectures several topics are covered of which key points are discussed in seminars. Most seminars are conducted in computer lab form, where students can make use of econometrical software and work on practical assignments. |