| Responsible Department | Institute of Food and Resource Economics | ||||||||||||
| Earliest Possible Year | MSc. 1 year to MSc. 2 year | ||||||||||||
| Duration | One block | ||||||||||||
| Credits | 7.5 (ECTS) | ||||||||||||
| Level of Course | MSc | ||||||||||||
| Examination | Final Examination written examination Written Exam in Lecturehall All aids allowed Description of Examination: The exam is a 4 hour written exam. Weight: 100% 7-point scale, internal examiner | ||||||||||||
| Requirement for Attending Exam | The course content is divided into themes. Each theme consists of a number of questions under a thematic heading. At least 2 written theme papers must be approved for attending exam. | ||||||||||||
| Organisation of Teaching | Lectures and theoretical exercises | ||||||||||||
| Block Placement | Block 3 Week Structure: C | ||||||||||||
| Language of Instruction | English | ||||||||||||
| Optional Prerequisites | 210002 290030 290040 290055 | ||||||||||||
| Restrictions | none | ||||||||||||
| Course Content | |||||||||||||
| Why are some countries rich and other countries poor? Why have Singapore, Taiwan and South Korea had annual growth rates well above 5 per cent per year during the last 50 years while many sub-Saharan African countries are not growing at all? What is the engine of economic growth? Why have some countriers benefitted from the technological development while others lag far behind? These are some extremely important and interesting - but also very complex - questions. The economic development of a country may be influenced by many different factors. Therefore, for economists, seeking answers to these questions requires a formalised framework where the various mechanisms can be traced and analysed. During this course the students are introduced to such formalised theoretical frameworks: the original model of exogenous technological progress by Robert Solow and extensions of that model including optimizing households and human capital. Further, the model of endogenous long-run growth by Paul M. Romer is covered together with Charles I. Jones' semi-endogenous version of the model and some of Grossman and Helpmans open economy extensions. Since economic theories are usually described mathematically, learning growth theory requires the students to use mathematical tools such as differentiation, differential equations and dynamic optimization. If necessary, adequate texts on these issues will be distributed during the course but the focus of the course is on economics instead of math. The students will be actively involved in developing the theoretical frameworks and using them for policy analyses or small modifications. They will also become familiar with existing empirical evidence that is relevant for evaluating the theoretical frameworks. | |||||||||||||
| Teaching and learning Methods | |||||||||||||
| The course requires active participation. The course content is divided into 5-7 themes. A theme is made up of a number of questions under a thematic heading. Each theme is initiated by a lecture where the theme is introduced and put into perspective followed by group work on the theme questions. The themes organise the students' work during the course, and working on the theme questions allow the students to develop the theories in stead of being introduced to the theories through a lecture. | |||||||||||||
| Learning Outcome | |||||||||||||
| The main objective of the course is to introduce formalised frameworks for analysing questions of income differences, differences in the rate of income growth and technological differences across countries - questions that are central to macroeconomics. In the bachelor course Economic policy, the students became familiar with theoretical frameworks describing the macroeconomy in the short run. During this course the time horizon is extended to the long run implying a shift in focus - from business fluctuations taking the technology as given to technology and long-run development. After completing the course the student should hold the following list of specific competences. Knowledge: - understand the building blocks of neoclassical growth theory - identify key assumptions in the Solow and Romer models Skills: - derive steady state solutions of the Solow and Romer models mathematically - analyse steady state properties of the Solow and Romer models mathematically and graphically - deduce transitional dynamics in the Solow model graphically Competences: - choose between competing growth models when analysing specific questions - evaluate statements about growth mechanisms applying formalised growth models | |||||||||||||
| Course Literature | |||||||||||||
| Charles I. Jones. "Introduction to economic growth", 2nd edition, 2002. W.W. Norton. | |||||||||||||
| Course Coordinator | |||||||||||||
| Lill Thanning Andersen, lth@foi.dk, Institute of Food and Resource Economics/International Economics and Policy Unit, Phone: 353-36865 | |||||||||||||
| Study Board | |||||||||||||
| Study Committee NSN | |||||||||||||
| Work Load | |||||||||||||
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