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351-0539-00L 3 Credits DS , MSC D-USYS , D-GESS , D-MTEC , D-MATH
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Economic Dynamics

Lecturers & Examiners: Dr. Thomas Michael Steger
VVZ CR n/a

Last Updated: 2026-02-05 15:06:35

Abstract

Overview of economic growth theory; study of some standard growth models; discuss important issues related to economic development.

Objective

Why is it that, in modern times, some countries are extremely poor while others are fairly rich? Why has the standard of living been increasing by a factor of about 6 during the last 100 years in most of OECD economies? These are the staggering questions which are at the center of economic growth theory. Generations of economists found it fascinating to think about the causes (and sometimes also about the consequences) of economic growth. This fascination has been expressed by Lucas (JME, 1988, p. 5) who stated that once one starts to think about economic growth, it is hard to think about anything else. Modern growth theory is characterized by an extensive use of formal concepts, methods and models. This course, among other things, aims at demonstrating how these models can be used to tackle the issues raised above. Specifically, there are three main objectives: (1) An overview of the theory of economic growth is provided (the models discussed are listed below); (2) it is shown how economic growth models are usually set up; (3) we will use economic growth.

Content

1 Introduction 1.1 Empirical Regularities 1.2 Some Growth Empirics 1.3 Basic Methods and Concepts 2 Neoclassical Growth Theory 2.1 The Solow Model 2.2 The Ramsey Model 2.3 The Convergence Debate 2.4 Subsistence Consumption and Evolution of Savings Rate 2.5 Happiness and the Concern for Social Status 3 Endogenous Growth Theory 3.1 AK-type Growth Models 3.2 Government Spending and Taxation 3.3 Education and Economic Development 3.4 Endogenous Technical Change 4 Growth in the Open Economy 4.1 Capital Market Integration 4.2 Goods Market Integration 5 Institutions and Public Policy 5.1 Good and Bad National Policies 5.2 Government Corruption 5.3 The Importance of Institutions

Resources

Lecture Notes

A script will be provided.

Literature

(1) Jones, Charles, Introduction to Economic Growth, W. W. Norton & Company; 2nd edition, 2002. (2) Solow, R. M., Growth Theory, An Exposition (3) Easterly, William, The elusive quest for growth: economists' adventures and misadventures in the tropics. MIT Press, 2001.

Learning Materials (Links)

General Information

Language
English
Levels
DS , MSC
Frequency
Yearly recurring

Examination

Type
session examination
Mode
oral 30 minutes

Course Components

Type Title Time & Place Hours
lecture Economic Dynamics
  • Wed 17:15-19:00 (HG D 1.1)
2 h weekly

Offered In