Course Meeting Times
Lectures: 2 sessions / week, 1.5 hours / session
Recitations: 1 session / week, 1.5 hours / session
Description
This is a half semester introduction to the neoclassical growth model-the workhorse of modern macroeconomics-and a review of endogenous growth theory. Topics will include basic facts of economic growth and long-run economic development; brief overview of optimal control theory and dynamic programming; basic neoclassical growth model under a variety of market structures; human capital and economic growth; endogenous growth models; models with endogenous technology; models of directed technical change; competition, market structure and growth; financial and economic development; international trade and economic growth; institutions and economic development. This is a half-term subject. The class size is limited.
If you are an MIT Economics Ph.D. student, you have to take the course (or pass the waiver). Otherwise, please come and see me to discuss whether this course is appropriate for you.
Prerequisites
14.461 Advanced Macroeconomics I
Grading
| ACTIVITIES | PERCENTAGES |
|---|---|
| Problem Sets | 30% |
| Final Exam | 70% |
Bonus points are also given for class participation.
Required Texts
Acemoglu, D. Introduction to Modern Economic Growth. Cambridge, MA: Massachusetts Institute of Technology, 2007.
Barro, R. J., and X. Sala-i-Martin. Economic Growth. New York, NY: McGraw-Hill, 1995. ISBN: 0070036977.
Calendar
| SES # | TOPICS | KEY DATES |
|---|---|---|
| I. An Introduction to Growth Models and Growth Facts | ||
| L1-L2 |
Syllabus, Introduction Economic Growth and Economic Development The Solow Growth Model The Solow Growth Model and the Data |
|
| R1 | Empirics of Economic Growth | |
| II. The Neoclassical Growth Model | ||
| L3-L6 |
Foundations of Neoclassical Growth Dynamic Programming and Optimal Growth Review of the Theory of Optimal Control The Neoclassical Growth Model |
Problem set 1 out on Ses #L4 Problem set 1 due and Problem set 2 out on Ses #L6 |
| R2 | The Neoclassical Growth Model | |
| III. Using the Neoclassical Growth Model Beyond Growth: Asset Pricing, Public Finance, Overlapping Generations | ||
| L7-L8 | Growth with Overlapping Generations | Problem set 2 due on Ses #L8 |
| R3 | Applications of the Neoclassical Growth Model | Problem set 3 out |
| IV. Endogenous Growth I: AK, Spillovers, Human Capital | ||
| L9-L10 |
Human Capital and Economic Growth First-Generation Models of Endogenous Growth |
|
| R4 | Optimization Methods |
Problem set 3 due Problem set 4 out |
| V. Endogenous Growth II: R&D, Varieties vs. Quality, Directed Technological Change | ||
| L11-L12 |
Expanding Variety Models Models of Competitive Innovations Directed Technological Change |
|
| R5 | Expanding Variety Models |
Problem set 4 due Problem set 5 out |
| L13 | Summary |
Problem set 5 due Final Exam four days after Ses #L13 |
