Economic Growth and Innovation

Code:

2ME14

Acronym:

EGI

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2022/2023 - 2S

Active?	Yes
Course/CS Responsible:	Master in Economics

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
ME	11	Official Syllabus after 2021-2022	1	-	6	42	162

Teaching language

Portuguese

Objectives

This course aims to analyse the key empirical facts of economic growth in the 21th century and, based on this context, study the most significant contributions of the neoclassical literature of economic growth, with an emphasis on endogenous growth as the current mainstream strand of the literature. Given this framework, the course stimulates the students' reflexion on the role of policy regarding economic growth. The course also aims to stimulate ideas for autonomous research on topics of economic growth.

Learning outcomes and competences

The student must be able to understand the empirical nature of the phenomenon of economic growth in modern market economies. In addition, the student must be able to understand and develop a critical view of the role played by the benchmark models in the literature, as well as their limitations, regarding the explanation of the key empirical facts of economic growth.

Working method

Presencial

Program

1. Introduction: key empirical facts of economic growth in the 21th century.

2. The mechanics of growth: level effect versus growth effect and transitional dynamics versus long-run dynamics.

3. Neoclassical models of exogenous growth.

4. Baseline models of endogenous growth.

5. Recent applications of the endogenous-growth setup.

Mandatory literature

Daron Acemoglu; Introduction to modern economic growth. ISBN: 978-0-691-13292-1
Robert J. Barro; Economic growth. ISBN: 978-0-262-02553-9
Jones, Charles; Romer, Paul; The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital, American Economic Journal: Macroeconomics, 2(1), 224-45, 2010

Complementary Bibliography

Philippe Aghion; The^economics of growth. ISBN: 978-0-262-01263-8
Charles I. Jones; Introduction to economic growth. ISBN: 978-0-393-92078-9

Teaching methods and learning activities

Classes are mainly expositional, but incentivizing students to engage in an open discussion of the relevance of the theoretical contributions in the literature and their relation to the empirical evidence. Computer-based examples of model implementation will be provided.

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Teste	100,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	120,00
Frequência das aulas	42,00
Total:	162,00

Eligibility for exams

(I) Distributed assessment with 2 tests:
- Minimum grade in each test: 6.0.
- A grade below 6.0, in any test, excludes the student from distributed assessment.

(II) Or, assessment by final exam.

Approval in the course requires an average grade of 9.5 or higher.

Calculation formula of final grade

Distributed assessment: Final grade = 50%*T1 + 50%*T2

Classification improvement

It is possible to improve the grade pertaining to the frequency of the course according to the article 18 of the Assessment Regulations for the 1st and 2nd cycle students of the Faculty of Economics of U. Porto.