Readings

Textbook

The main textbook for the course is:

[IMEG] = Buy at Amazon Acemoglu, Daron. Introduction to Modern Economic Growth. Princeton, NJ: Princeton University Press, 2008. ISBN: 9780691132921.

SES # TOPICS READINGS
1

Part 1

Stylized facts of economic growth and development

Part 2

Introduction to the Solow growth model

Part 1

[IMEG] chapter 1.

Buy at Amazon Helpman, Elhanan. Mystery of Economic Growth. Cambridge, MA: Harvard University Press, 2004. ISBN: 9780674015722.

Quah, Danny. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs." Journal of Economic Growth 2, no. 1 (March 1997): 27-60.

Jones, Charles I. "On the Evolution of the World Income Distribution." Journal of Economic Perspectives 11, no. 3 (Summer 1997): 19-36.

Acemoglu, Daron, Simon Johnson, and James Robinson. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution." Quarterly Journal of Economics 117, no. 4 (November 2002): 1231-1294.

Part 2

[IMEG] chapter 2.

Buy at Amazon Solow, Robert. Growth Theory: An Exposition. 2nd ed. New York, NY: Oxford University Press, 2000. ISBN: 9780195109030.

2 Introduction to the Solow growth model (cont.)

[IMEG] chapter 2.

Buy at Amazon Solow, Robert. Growth Theory: An Exposition. 2nd ed. New York, NY: Oxford University Press, 2000. ISBN: 9780195109030.

3

Part 1

The Solow model and the data; growth accounting, levels accounting, and the facts

Part 2

Fundamental causes of income differences

Part 1

[IMEG] chapter 3.

Mankiw, N. Gregory, David Romer, and David N. Weil. "A Contribution to the Empirics of Economic Growth." Quarterly Journal of Economics 107, no. 2 (May 1992): 407-437.

Buy at Amazon Barro, Robert, and Xavier Sala-i-Martin. Economic Growth. 2nd ed. Cambridge, MA: MIT Press, 2003, chapter 10. ISBN: 9780262025539.

Young, Alwyn. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience." Quarterly Journal of Economics 110, no. 3 (August 1995): 641-680.

Hall, Robert, and Charles I. Jones. "Why Do Some Countries Produce So Much More Output per Worker than Others?" Quarterly Journal of Economics 114, no. 1 (February 1999): 83-116.

Buy at Amazon Klenow, Peter J., and Andres Rodriguez-Clare. "The Neoclassical Revival in Growth Economics: Has It Gone Too Far?" In NBER Macroeconomics Annual 1997. Edited by Ben S. Bernanke and Julio J. Rotemberg. Cambridge, MA: MIT Press, 1997, pp. 73-103. ISBN: 9780262522427.

Trefler, Daniel. "International Factor Price Differences: Leontief Was Right!" Journal of Political Economy 101, no. 6 (December 1993): 961-987.

Part 2

[IMEG] chapter 4.

Buy at Amazon Diamond, Jared M. Guns, Germs, and Steel: The Fate of Human Societies. New York, NY: W.W. Norton and Co., 2005. ISBN: 9780393061314.

Acemoglu, Daron, Simon Johnson, and James A. Robinson. "The Colonial Origins of Comparative Development: An Empirical Investigation." American Economic Review 91, no. 5 (December 2001): 1369-1401.

4 Foundations of Neoclassical growth; representative customers, optimal and competitive allocations, welfare theorems

[IMEG] chapter 5.

Buy at Amazon Mas-Colell, Andreu, Michael D. Whinston, and Jerry R. Green. Microeconomic Theory. New York, NY: Oxford University Press, 1995, chapters 4 and 16. ISBN: 9780195073409.

Buy at Amazon Bewley, Truman F. General Equilibrium, Overlapping Generations Models, and Optimal Growth Theory. Cambridge, MA: Harvard University Press, 2007. ISBN: 9780674022881.

5-6 Neoclassical growth

[IMEG] chapter 8.

Chari, V. V., Patrick Kehoe, and Ellen McGrattan. "The Poverty of Nations: A Quantitative Investigation." Staff Report 204, Federal Reserve Bank of Minneapolis, Minneapolis, MN, October 1997.

7 Overlapping generations and dynamic efficiency

[IMEG] chapter 9.

Shell, Karl. "Notes on the Economics of Infinity." Journal of Political Economy 79, no. 5 (September-October 1971): 1002-1011.

Diamond, Peter. "National Debt in a Neoclassical Growth Model." American Economic Review 55, no. 5, Part 1 (December 1965): 1126-1150.

Buy at Amazon Jones, Larry. "Special Problems Arising in the Study of Economics with Infinitely Many Commodities." In Models of Economic Dynamics. Edited by Hugo Sonnenschein. Berlin, Germany: Springer-Verlag, 1986, pp. 184-205. ISBN: 9783540160984.

8 Neoclassical endogenous growth: capital accumulation, externalities, and human capital

[IMEG] chapters 10, 11, and 12.

Rebelo, Sergio. "Long-Run Policy Analysis and Long-Run Growth." Journal of Political Economy 99, no. 3 (June 1991): 500-521.

Jones, Larry E., and Rodolfo E. Manuelli. "A Convex Model of Equilibrium Growth: Theory and Policy Implications." Journal of Political Economy 98, no. 5 (October 1990): 1008-1038.

Romer, Paul M. "Increasing Returns and Long-Run Growth." Journal of Political Economy 94, no. 5 (October 1986): 1002-1037.

———. "Idea Gaps and Object Gaps in Economic Development." Journal of Monetary Economics 32, no. 3 (December 1993): 543-573.

Ben Porath, Yoram. "The Production of Human Capital and the Life Cycle of Earnings." Journal of Political Economy 75, no. 4 (August 1967): 352-365.

Nelson, Richard R., and Edmund S. Phelps. "Investment in Humans, Technological Diffusion and Economic Growth." American Economic Review 56, nos. 1-2 (March-May 1966): 69-75.

Acemoglu, Daron. "A Microfoundation for Social Increasing Returns in Human Capital Accumulation." Quarterly Journal of Economics 111, no. 3 (August 1996): 779-804.

Lucas, Robert E., Jr. "On the Mechanics of Economic Development." Journal of Monetary Economics 22, no. 1 (July 1988): 3-42.

Buy at Amazon Acemoglu, Daron, and Joshua Angrist. "How Large are Human Capital Externalities? Evidence from Compulsory Schooling Laws." In NBER Macroeconomics Annual 2000. Edited by Ben S. Bernanke and Kenneth S. Rogoff. Cambridge, MA: MIT Press, 2001, pp. 9-59. ISBN: 9780262523141.

9-10 Endogenous growth with expanding input varieties

[IMEG] chapter 13.

Romer, Paul M. "Growth Based on Increasing Returns due to Specialization." American Economic Review 77, no. 2 (May 1987): 56-62.

———. "Endogenous Technological Change." Journal of Political Economy 98, no. 5 (October 1990): S71-S102.

Jones, Charles I. "R&D-based Models of Economic Growth." Journal of Political Economy 103, no. 4 (August 1995): 759-784.

11 Interdependences: human capital, technology diffusion, trade, and the world income distribution in an open economy

[IMEG] chapters 18 and 19.

Krugman, Paul. "A Model of Innovation, Technology Transfer, and the World Distribution of Income." Journal of Political Economy 87, no. 2 (April 1979): 253-266.

Acemoglu, Daron, and Jaume Ventura. "The World Income Distribution." Quarterly Journal of Economics 117, no. 2 (May 2002): 659-694.

Ventura, Jaume. "Growth and Interdependence." Quarterly Journal of Economics 112, no. 1 (February 1997): 57-84.

Buy at Amazon Grossman, Gene, and Elhanan Helpman. Innovation and Growth in the Global Economy. Cambridge, MA: MIT Press, 1993. ISBN: 9780262570978.

12 Directed technical change: endogenous skill-bias and endogenous labor-augmenting technological change

[IMEG] chapter 15.

Acemoglu, Daron. "Directed Technical Change." Review of Economic Studies 69, no. 4 (October 2002): 781-809.

———. "Labor- and Capital-Augmenting Technical Change." Journal of the European Economic Association 1 (2003): 1-37.

———. "Equilibrium Bias of Technology." Econometrica 75, no. 5 (September 2007): 1371-1409.

13 Optimal and competitive growth under uncertainty

[IMEG] chapter 17.

Brock, William A., and Leonard Mirman. "Optimal Economic Growth under Uncertainty: Discounted Case." Journal of Economic Theory 4, no. 3 (June 1972): 479-513.

Buy at Amazon Ljunqvist, Lars, and Thomas J. Sargent. "Equilibrium with Complete Markets," and "Recursive Competitive Equilibria." Chapters 8 and 12 in Recursive Macroeconomic Theory. 2nd ed. Cambridge, MA: MIT Press, 2004, pp. 208-263 and 366-391. ISBN: 9780262122740.

Aiyagari, S. Rao. "Uninsured Idiosyncratic Risk and Aggregate Saving." Quarterly Journal of Economics 109, no. 3 (August 1994): 659-684.

Bewley, Truman F. "The Permanent Income Hypothesis: A Theoretical Formulation." Journal of Economic Theory 16, no. 2 (December 1977): 252-292.

Buy at Amazon ———. "The Optimum Quantity of Money." In Models of Monetary Economics. Edited by J. H. Kareken and N. Wallace. Minneapolis, MN: Federal Reserve Bank of Minneapolis, 1980, pp. 169-210. ISBN: 9780960393602.

Buy at Amazon Ljunqvist, Lars, and Thomas J. Sargent. "Self-insurance," and "Incomplete Markets Models." Chapters 16 and 17 in Recursive Macroeconomic Theory. 2nd ed. Cambridge, MA: MIT Press, 2004, pp. 545-614. ISBN: 9780262122740.

Acemoglu, Daron, and Fabrizio Zilibotti. "Was Prometheus Unbound by Chance? Risk, Diversification, and Growth." Journal of Political Economy 105, no. 4 (August 1997): 709-751.