Growth, Development, Trade and Environment (731.330)
The lecture is based on the book "Growth and Distribution" by Ducan K. Foley and Thomas R. Michl published 1999 by Harvard University Press. A copy of the book is available in the library in the basement of the Guttenberghaus in Feistmantelstr. 4. The Extended Penn Table version 4.0 used in the book are available from the Foley's wepbage. Since the publication of the book new data have been published. In the lecture we use, were possible, the Penn World Table 8.1 available from the University of Groningen. R code presented in the lecture (for those interested in trying at home). [The password is provided in the lecture]. Some slides from the lecture are available. The "_v0xx.pdf" part in the file name is short for the version (for keeping track of updates). We will probably cover chapter 2 to 8. We will skip the following sub-chapters of the book, you do not need to study them (or the 'Problems' which are given there): 3.7. Two-sector Growth-Distribution Schedules 5.1.1. Solving the two-period consumption problem 5.2.1. Solving the infinite-horizon problem Problems: 3.4 (but the result of this problem is interesting to remember), 6.8, For the exam you will be provided an overview sheet for the models we analyzed to help you answering the exam questions. I find chapter 8 not so easy to follow. If you share my experience, I recommend supplementing it with chapter 2.1 of the book "Introduction to Economic Growth" by Charles Jones and Dietrich Vollrath. But take care that in this book the time is continuous, while in Foley and Michl it is discrete (also output per worker is noted as y instead of as x). Video of Ducan Foley explaining how climate change mitigation can be a pareto improvement (minute 5 to 20)