The course offers an introduction to economic growth. First, it offers a review of the key empirical facts related to the differences in standards of living among countries over the last two centuries. Both developed and developing countries are covered. Second, theories focusing on factor accumulation are presented as preliminary explanations for the historical experience of countries. The role of physical and human capital, population growth and demographic change are examined. Third, technological progress as a key preliminary explanation of economic growth is emphasized, before the fundamental causes of economic growth such as institutions, income inequality, culture, geography and natural resources are discussed. The course aims to provide the ground for a deeper analysis of economic growth.
Students that successfully passed this course: feel like an expert in the field, are able to discuss issues related to economic growth on a basic level; Know the most important modern theoretical models that try to explain the key empirical relationships; Master the key methods used to solve and analyze the models and to examine policies. Students therefore have a critical perspective on the advantages and limitations of these models and they know how these models can be used to analyze research questions such as:
- Why are there such large differences in income per capita and worker productivity across countries?
- Why do some countries grow rapidly while other countries stagnate?
- What sustains economic growth over long periods of time and why did sustained growth start 200 years or so ago?
- What are the potential roles for policy in the process of economic growth?