363-0562-01L  Economics of Innovation and Growth

Semester Autumn Semester 2013
Lecturers H. Gersbach
Periodicity yearly course
Language of instruction English

Abstract Overview how the world has developed. Understanding the role of innovation for economic growth. Design of policies to foster innovation and growth.
Objective There are three goals of the lecture. First, understanding how the world has developed over the last centuries and the proximate and fundamental causes of economic growth. Second, understanding and application of the basic models of economic growth. Third, design of policies to foster innovation and growth to reduce the large wealth differences in the world.
Content 1. Introduction

2. Neoclassical Growth Theory

3. Innovations and Growth (New Growth Theory)

4. Growth Policy

5. Institutions and Growth
Lecture notes The transparencies used in the lectures will be distributed to the participants.
Literature Core literature:

1.Acemoglu, D. (2009): Introduction to Modern Economic Growth. Princeton University Press, Cambridge MA.

2. Barro, R.J. and X. Sala-i-Martin (2004): Economic Growth. MIT Press.

3. Aghion P. and P. Howitt (1998): Endogenous Growth Theory. MIT Press.

4. Aghion P. and S. Durlauf (eds. 2005): Handbook of Economic Growth. Elsevier, chapter 6.

Additional literature:

6. Romer, D. (2001): Advanced Macroeconomics. McGraw-Hill, chapters 1 and 3.

5. Bretschger, L. (1999): Growth Theory and Sustainable Development. Edward Elgar.

7. Romer, P. (1990): Endogenous Technological Change, Journal of Political Economy, Vol. 98(5).

8. Aghion, P. and P. Howitt (1992):A Model of Endogenous Growth through Creative Destruction. Econometrica, Vol. 60(2).

9. Lucas, R. (1988): On the Mechanics of Economic Development, Journal of Monetary Economics, Vol. 22.

10. Rebelo, S. (1991): Long-Run Policy Analysis and Long-Run Growth. Journal of Political Economy, Vol. 99(3).