Advanced Macroeconomics II: Growth and Development

The course builds on knowledge presented in Intermediate Macroeconomics Theory and has the objective to provide the student with theories and methods for analysing macroeconomic growth, including endogenous economic growth - especially related to human capital and R & D.

The course presents neoclassical models of economic growth and more recent models of endogenous economic growth, including empirical applications of the models.

The course also aims to make students familiar with the nexus between economic growth, inequality and poverty. It presents concepts such as the Kuznets curve and different measures of pro-poor growth.

Successful completion of this module will enhance the student's ability to:

• Discuss complex macroeconomic policy issues and relate arguments to well understood theoretical principles.
• Distinguish between alternative ways of analysing economic growth and development.
• Assess the aggregation problems associated with the interface between micro assumptions and macro formulations.
• Assess how well theoretical models depict macroeconomic processes.

Indicative Resources

Core course books

• Acemoglu, D. (2009), Introduction to modern economic growth, Princeton NJ: Princeton University Press.
• Romer, D. (2012), Advanced Macroeconomics, 4^thEd.,New York NY: McGraw-Hill.

Background Texts (include number in library or URL) (incl ISBN)

• Barro, Robert,and Xavier Sala-I-Martin (2004), Economic Growth, 2^ndEd., Cambridge MA, MIT Press.
• Ravallion, M., S. Chen (2003), Measuring Pro-Poor Growth, Economics Letters 78: 93–99

Additional references

• GALE, D. (1973) “Pure Exchange Equilibrium of Dynamic Economic Models,” Journal of Economic Theory, 6, 12-36.
•  GEANAKOPLOS, J.D. (1987) “Overlapping Generations” in the The New Palgrave Dictionary of Economics—General Equilibrium. Edited by J. Eatwell, M. Milgate, and P. Newman. London, Macmillan.
•  KIYOTAKI, N., AND J. MOORE (1997) “Credit Cycles,” Journal of Political Economy, 105, 211-248.
• SHELL, K. (1971) “Notes on the Economics of Infinity,”Journal of Political Economy, 79, 10

Teaching team:

Teaching team: Prof Rainer Thiele, Dr. Kabanda Richard, Ms Umulisa Yvonne