Economics of Growth

Economics 475

Spring 2017

 Department of Economics
University of Wisconsin-Madison


Office Hours before Exam 3 :
Tu May 2: 2-3 pm
Wed May 3:11 am- 1 pm


Professor Maria Muniagurria
6418 Social Science
Phone:263-3865
Email: munia@ssc.wisc.edu
Office Hours: Tu 2-3 pm and Th 1-2 pm

Syllabus

e-reserves


Regrade Policy

Regrade Form


Spring 2017 Lecture Notes

Week 1 Tu Th
Week 2   Tu  Th
Week 3   Tu
               Th 
              
Excel Simulations: approach to SS, K gift, changes in savings rate(updated 2-3-17)
Week 4  Tu  Th

Week 5  Tu    Th


Exam 1 Review (includes the Solow question that was not fully covered in the review)

Week 6 Tu (exam) Th

Week 7 Tu  Th
Week 8
Week 9
Week 10 Tu  Th
Exam 2 Review
Week 11 Th
Week 12
Week 13
Week 14
Lecture on Inequality and Mobility
   
AK to Questions I and II from the sample exam


News/Current Policy Discussions

Can The US Economy Sustain a 3 1/2 -4 % Growth? (EconoFact, Jan 2017) Trading Economics Charts



Homework Problems


Homework 0 (TYPO fixed on Tu Jan 31)  Due in lecture on Th February 2 Answer key
Homework 1 due in Lecture on Th February 9 Answer Key    Excel question (3)
Homework 2 Due at the review session ( Sun Feb 19 at 1.15 pm, 6203 Soc Sci on drop in Maria's mailbox before then) Answer Key

Homework on Growth and Education (3-5 pages report,  8% of semester grade)  Due in Lecture on Tu April 11, Figure source:  Benhabib and Speigel  (1994 JME)

Homework Solow with Land and Exhaustible Resources  Due in Lecture Tu May 2 Answer Key


Excel Simulations Solow Model
 

Basic Equations

Model Without Technological Change:
 Example 1 (countries differ in rate of population growth)  
 Example 2 (countries differ in saving rates)
 Other Examples  (single country: changes in savings rate and capital gift)Model With Exogenous Technological Change
Example 3 (countries differ in initial technology)    
 Example 4 (countries differ in their savings rates) 



Data Analysis Homework Sets:

 Homework Data I   Due Thursday March 9 in Lecture

        Sample AK Stata
        Sample AK other

General Information

               Extended Database

            Data Plotter
            Better Histogram Download

 


Exams                                                                                              Date                                                Room

Exam 1     Answer Key  Score Distribution                                        Tuesday February 21                          Last names A-N : usual room 212 Educ  Sc   
                                                                                                                                                                
Last names P-Z:      1289 Comp S&ST  
   

Exam 2    Answer Key   Score Distribution (Max score 84 pts)           Tuesday April 4                                 Last names A-N : usual room 212 Educ  Sc   
                                                                                                                                                                
Last names P-Z:      1289 Comp S&ST  


Exam 3                                                                                             Thursday May 4                            
Last names A-N : usual room 212 Educ  Sc   
                                                                                                                                                                
Last names P-Z:      1289 Comp S&ST  




Older Exams

S16 Exam 3




 

S16 Links
Blog Why Nations Fail by D. Acemoglu and J. Robinson
WSJ UK Productivity (Jan 2015)
2014 Economic Report of the President
NBER data page


Older Lecture Notes/ Other Notes 

Slopes/Logs Examples   (posted 2-19-16)
 

Handout on Tools Jones 5
Additional Handout on Jones 5
Handout Solow with Land

 

Handout on Fuente 1995

Equations Ch.5 Model

Equations Ch.6 Model
Equations Ch. 9 Model

 


Interesting Links
Piketty : Capital in the 21st Century
CUNY Piketty discussion
Vollrath: Piketty and Growth Economics
Solow: Piketty's Capital in the 21st Century
Understanding Inequality: U of Chicago November 2015

Krugman:  Why we are in a new gilded age


HANDOUTS/ NOTES/ SIMULATIONS 

Handout from A. Young "The Tyranny of Numbers:Confronting the Statistical realities of the East Asian Growth Experience."
 Handout from A. Young "A Tale of Two Cities: Factor and Technical Change in Hong Kong and Singapore."
 Handout from Jones Ch.3 "Empirical Applications of Neoclassical Growth Models."
 Multiple RegressionInstrumental Variables (Stock and Watson)

Selected sections  from "Colonial Origins of Comparative development....." from Acemoglu, Johnson and Robinson. Response to Albouy

 

DATA SOURCES

Gapminder
Weil's Economic Growth Data/Plotter

Penn World Tables
World Development Indicators
Diego Comin's Web Page (tech. adoption data)
CEPAL Data (Latin America)


Excel Simulations of Solow Model (written by Prof. Scott Taylor)

Handout on Excell simulations

(1)Simulations Solow Model with population growth and without technological change (countries differ in population growth parameter)
(2)Simulations Solow Model with population growth and without technological change (countries differ in savings rate)
(3)Simulations Solow Model with population growth and technological change (countries differ in initial technology parameter A)
(4)Simulations Solow Model with population growth and technological change (countries differ in savings rates)
 


Additional Readings:

Mauritius : African Sucess Story , NBER Digest, May 2011
Technology Diffusion and Postwar Growth, NBER Digest February 2011

Green Solow Paper (Taylor and Brock)

Solow Lecture on Sustainability

Galor: Income Inequality, Human Capital and Development



Reference Readings:

Albouy, David, The Colonial Origins of Comparative Development: An Investigation of the Settler Mortality Data, 2006 .

Acemoglu, D.  Johnson, Robinson,  "The Colonial Origins of Comparative development: an Empirical Investigation" ,  AAE Dec 2001.JSTOR link

Brock, William A. and Taylor, M. Scott Scott, "The Green Solow Model" (May 31, 2004). Social Science Research Institute Working Paper No. 2004-16. Available at SSRN:
http://ssrn.com/abstract=555262

Cardenas, M., “Economic Growth in Colombia: A Reversal of ‘Fortune’?, Center for International Development at Harvard University  Working Paper  No. 83, December 2001.

Dahlin, B., “The Impact of Education on Economic Growth: Theory, Findings and Policy Implications, Working Paper, Duke University, 2002.

Eaton, J. and S. Kortum, "Trade in Capital Goods" European Economic review (45) 2001 (this is a version of the paper from Kortum's web page, skip pages 13-23)

Easterly and Levine,  "Tropics, Germs and Crops: How Endownments Influence Economic Development" , by, NBER Working Paper 9106. Journal of Monetary Economics,50,             January 2003.  Science Direct Link  (smaller print)

Greenwald and Stiglitz: Helping Infant Economies Grow: Foundations of Trade Policies for Developing Countries,
AER, May 2006

Sukiassyan, Grigory, "Inequality and Growth: What does the Transition Economy Data Say?", Journal of Comparative Economics, 2007 (selected pages)

Jones, C. "R&D- Based Models of Economic Growth" , by  JPE August 1995.

Kremer, Michael  Schools, Teachers, and Education Outcomes in Developing Countries," (with Paul Glewwe), forthcoming in Handbook on the Economics of Education

Krueger, Alan B. and Lindahl, Mikael, "Education for Growth: Why and For Whom?" (January 2000). Princeton University, Industrial Relations Section Working Paper No. 429. Available at SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=223589

Prescott and ParenteBarriers to Riches (selected pages )

Subramanian, Arvind and Roy, Devesh, "Who Can Explain The Mauritian Miracle: Meade, Romer, Sachs or Rodrik?" (August 2001). IMF Working Paper No. 01/116

Taylor, A., "Three Phases of Argentine Economic Growth" , by Alan Taylor, NBER Historial Paper # 60 , 1994

Young, A., "A Tale of Two Cities: Factor and Technical Change in Hong Kong and Singapore," by Alwyn Young, 1992 NBER Macroeconomics Annual.

Young, A.,  "The Tyranny of Numbers: Confronting the Statistical Realities of the East  Asian Growth Experience" QJE, 1995.



Additional items/Interesting Papers 

Comments from Krugman and Stiglitz on East Asian Growth.
"Roots of Development," The Economist, October 2002
.

"International Trade and Domestic Institutions: the medieval response to globalization"  Dan Trefler's presentation
Asian Growth and African Development," Michael Kremer and  Marcos Chamon, forthcoming in AER Papers and Proceedings

The Growth Report: Strategies for Sustained Growth and Inclusive Development  (Commission on Growth and Development, 2008)


Links: 

 Lecture Notes Graduate Course on Economic Growth by Acemoglu, Daron. 14.452 Economic Growth, Fall 2009. (Massachusetts Institute of Technology: MIT OpenCourseWare), http://ocw.mit.edu . License: Creative Commons BY-NC-SA

The World Bank: Economic Growth Research Page

Michele Boldrin Notes on Growth and Development