Section One Objectives

A basic goal of macroeconomic theorists is to understand how key macro variables (employment, output, price levels...) change over time. One particular concern is economic growth, the relative change in the size of economies over time as measured (for example) by real per capita gross domestic product. At present, disagreements remain concerning the primary determinants of long-run economic growth for decentralized market economies. Another unresolved issue is the need to explain the lack of convergence of growth rates among world economies. Major disagreements also persist concerning the extent to which government policy makers can influence economic growth, and the extent to which they ought to do so.

During the first five weeks of Econ 602 we will examine several influential economic growth models in an attempt to understand fundamental agreements and disagreements that are shaping much of the current debate among macroeconomists specializing in economic growth. Although careful attention will be paid to basic technical modelling aspects, the main stress of this section of Econ 602 will be on the usefulness of alternative economic growth models for the examination of empirically substantive issues.

Section One Topics

1. Economic Growth: Overview
2. Basic Modelling Concepts
3. Neoclassical Aggregate Growth Models
4. Overlapping Generations Economies
5. Endogenous Growth Models

Section One Course Structure

Credits: 4 credits total (entire course)

Prerequisites for Section One: Intermediate micro and macro; Advanced calculus

Grading: Grades for this section of Econ 602 will be determined on the basis of take-home and in-class exercises as well as a final exam. Class discussion will count for extra credit in case of a borderline grade.

Reading Assignments: There is no required textbook for this section of Econ 602, although the purchase of David Romer's Advanced Macroeconomics (McGraw-Hill, Second Edition, 2001) is recommended. Required readings will be assigned from a variety of sources (journal articles, books, lecture notes, ...). All required readings will be placed on closed reserve in the Econ/Soc Reading Room (Third Floor, Heady Hall), together with a selection of recommended readings. Please see the section one syllabus for a detailed listing of readings, assignments, and in-class discussion questions for section one of Econ 602.

Disability Statement

If you have a disability and require accommodations for this course, please contact the instructor early in the semester so that your learning needs can be appropriately met. You will need to provide documentation of your disability to the Disability Resources (DR) office, located on the main floor of the Student Services Building, Room 1076, 515-294-6624.

Copyright © 2003 Leigh Tesfatsion. All Rights Reserved.