Economic Growth

Code:

2EGIN02

Acronym:

CE

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2023/2024 - 1S

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Master in Economics and Management of Innovation

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
EGIN	37	Bologna Syllabus since 2012	1	-	7,5	56	202,5

Teaching language

Portuguese

Objectives

The aim of the course is to analyse the most significant contributions of the economic growth literature emphasizing the role of technological progress and, subsequently, to generate ideas for independent research.

Learning outcomes and competences

Students are encouraged to participate in classes and to read several chapters of seminal books and published papers, reaching the current state of the art in the literature of economic growth. The success in the course requires a solid preparation by students.

Working method

Presencial

Program

1. Growth and technology
1.1. Facts about economic growth
1.2. Contribution of innovation to economic growth
1.3. Technology as an economic good
1.4. Growth and growth rate
1.5. Proposed unified / generic growth model
2. Neoclassical theory: Solow-Swan and extensions
2.1. Steady state and transitional dynamics
2.2. Exogenous growth rate
2.3. Growth rates of inter-country
2.4. Convergence of growth rates
3. Basic mechanisms of endogenous growth
3.1. Model AK Solow-Pitchford
3.2. Model AK Romer: knowledge spillovers and increasing returns
3.3. Uzawa-Lucas model: growth education
3.4. Growth through learning-by-doing
3.5. Growth with endogenous technological progress
4. Models of endogenous technological progress
4.1. R&D horizontal and vertical
4.1.1. Production function of technology and models lab equipment and knowledge driven
4.1.2. Profits and market size
4.1.3. Value of an innovation
4.1.4. Policy Implications
4.2. Growth with and without scale effects
5. Diffusion of technology, trade and interdependence
5.1. Based on horizontal R&D models
5.2. Based on vertical R&D models
6. Direction of technological progress and wage inequality within and between country
6.1. Facts on wage inequality
6.2. Labor / human capital skilled and unskilled
6.3. Direction of technological progress as a determinant of wage inequality
6.4. Causes of the direction of technological progress: skill-biased technological change and international trade

Mandatory literature

Oscar Afonso, Paulo Beleza de Vasconcelos, Pedro Cunha Neves, Tiago Neves Sequeira; Crescimento Económico, Almedina, 2019. ISBN: 978-972-40-7988-2
Barro, Robert and Xavier Sala-i-Martin; Economic Growth, Cambridge, Massachusetts: MIT Press, 2004
Aghion, Philippe and Peter Howitt; Endogenous growth theory, Cambridge, MA: MIT Press, 1998
Grossman, Gene M. and Elhanan Helpman; Innovation and growth in the global economy, Cambridge, Massachusetts: MIT Press, 1991
Jones, Charles I.; Introduction to Economic Growth, W. W. Norton & Co., 2Rev Ed edition (6 Feb 2002)
António Manuel Figueiredo, Argentino Pessoa e Mário Rui Silva; Crescimento Económico, Escolar editora, 2008
Acemoglu, Daron; Introduction to Modern Economic Growth, Princeton University Press, 2009

Teaching methods and learning activities

The theoretical lessons will be supplemented with practical applications, discussions and reading papers/books.

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Participação presencial	5,00
Teste	95,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Frequência das aulas	39,00
Estudo autónomo	163,50
Total:	202,50

Eligibility for exams

Option A
Final grade = 0.45 * 1st test + 0.50* 2nd test + 0.05 Active participation in class> = 9.5, with score in  test> = 7.0. 

Option B
Final exam.

Under "active participation in classes" classification is obtained by valuating the student participation and attendance in the discussion in classes.

Calculation formula of final grade

See the previous point