Growth, Development, Trade and Environment (731.330)
The lecture is mainly 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 cover:
- Unified Growth Theory by Oded Galor (O. Galor, "Unified Growth Theory, 2011, Princton UP) (see slides and the presentation by Oded Galor at the AEA meeting 2014)
- Chapter 1, 2, 3, 6, 8 from the book "Growth and Distribution" by Foley and Michl (1999). See slides for details.
- An application of to global warming based on the article by Rezai, Foley and Taylor (2012) in the Journal Economic Theory. The article is also discussed by Foley and Taylor in a lecture at Tufts. See also the slides for details (still to be uploaded).
- Empirical applications of the neoclassical growth models based on Chapter 3 of the book "Introduction to economic growth" by Jones and Vollrath (2013, 3rd edition). 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. See slides for details (still to be uploaded).
We will skip several sub-chapters in the chaptes we cover and extend at several points, see slides for details. Relevant for the exam is everything we cover in class. At the exam you will be provided this overview sheet for the models we analyzed to help you answering the exam questions.