Resources: Ed, Syed, myself
I will not ask you to perform heavy mathematical stuff
1
Topics 1
Solow-Swan Model
- References: Romer Chapter 1 and Tutorial 1
- Things to know:
1. Key assumptions of the model
2. How to solve for steady-state values
3. How to analyze the steady-state impact of parameter changes
4. Golden rule
5. The Solow-Swan diagram and how to analyze
6. Transition dynamics and how to graph the time-path of endogenous variables
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Topics 2
Ramsey Model
- References: Romer Chapter 2 and Tutorial 2
- Things to know:
1. Key assumptions of the model
2. How to solve for steady-state values
3. How to analyze the steady-state impact of parameter changes
4. How to analyze the model using a phase diagram
5. Transition dynamics and how to graph the time-path of endogenous variables
6. How this model compares with Solow
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Topics 3
The Diamond Model
- Reading: Romer Chapter 2 and Tutorial 3
- Things to know:
1. Key assumptions of the model
2. How to solve the household decision problem
3. How aggregate household savings to get the law of motion for capital
4. Arguments about dynamic inefficiency
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Topics 4
Endogenous Growth
- Reading: Romer Chapter 3 until 3.5 and Tutorials 3 and 4
- Things to know:
1. Key assumptions of the models
2. How to solve for steady state (in endogenous growth models, broadly speaking)
3. Predictions of endogenous growth models
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Topics - 5
Alternative Explanations
− Reading: Romer, Chapter 4
− Reading: introduction of articles referenced in class
- Things to know:
1. Alternative explanations for economic development
2. The Solow Residual and its explanation power
3. No math requirement in chapter 4, except Solow Residual (4.2)