LOJK10258U Economic Growth and Development
MSc Programme in Agricultural Economics
MSc Programme in Environmental and Natural Resource Economics
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.
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
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.
- understand the building blocks of neoclassical growth theory
- identify key assumptions in the Solow and Romer models
- 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
- choose between competing growth models when analysing specific questions
- evaluate statements about growth mechanisms applying formalised growth models
The precise literature will be announced at the beginning of the course at Absalon.
- 7,5 ECTS
- Type of assessment
- Written examination, 4 hours under invigilation---
- All aids allowed
- Marking scale
- 7-point grading scale
- Censorship form
- No external censorship
one internal examiner
If 10 or fewer register for the reexamination the examination form will be oral.
Criteria for exam assesment
according to the learning outcome
- Theory exercises