Objectives

The aim of this course is to understand the key features of the growth and development process at the world level, both theoretically and empirically. The first part of the course will introduce a number of theoretical models to develop an analytical framework of economic growth in historical perspective and across countries. In the second part we will study empirically the fundamental sources of the vast income and growth differences across countries.

Objectives:

a) Get to know the facts of economic growth across countries and time.

b) Provide a theoretical framework for analyzing long-term economic growth and development, including neoclassical and endogenous growth theories, and the role of various factors in economic growth and development.

c) Cover important topics at the frontier of current research to identify the sources of growth and development.

d) Introduction to current empirical methods in applied economics.

The principal is Dr Tiziano Rotesi [tiziano.rotesi@unil.ch]. The TA for the course is Jinfeng Xu [jinfeng.xu@unil.ch].

The presentation material will be downloadable from the Moodle website of the course. The reading list for the second part of the course including the compulsory reading and the list of papers for the presentations will be distributed after week 4.

Contents

Session 1, February 23

- Introduction, Stylized Facts on Macro Development

- Stages of Growth: Malthusian Model

Session 2, March 2

- Unified Growth Theory

- The main components of UGT

Session 3, March 9

- Dynamic system and comparative development according to UGT

- Exercise Session for UGT

Session 4, March 16

- Review of theory: Neoclassical Growth Theory, Endogenous Growth Theory

- Set-up presentations calendar

Session 5, March 23

- Growth Accounting, empirical evidence

Session 6, March 30

- Human Capital and Innovation

Session 7, April 6

- Institutions

Session 8, April 20

- Culture

Session 9, April 27

- Geography and Natural Resources

Session 10, May 4

- Trade

Session 11, May 11

- Migration

Session 12, May 18

- Inequality and Poverty

Session 13, May 25

- Conflict

Session 14, June 1

- Environment

References

References: Examples of references are:

-Galor, O. 2011, “Unified Growth Theory”.

-Campante, F. et al. 2021, “Advanced Macroeconomics”.

-Banerjee, A. V, and E. Duflo. 2019. “Good Economics for Hard Times”.

-Acemoglu, D., S. Johnson and J. Robinson. (2001) “The Colonial Origins of comparative Development. An Empirical Investigation”, The American Economic Review vol 91, pp. 1369-1401

- Alesina, A., and P. Giuliano. 2015. "Culture and Institutions." Journal of Economic Literature, 53(4): 898-944.

-Barro, R. J. 2001. ''Human capital and growth'' American Economic Review, 91(2), 12–17

-Blattman, Christopher, and Edward Miguel. 2010. "Civil War." Journal of Economic Literature, 48(1): 3-57

- Ciccone, A., and E. Papaioannou. (2009) "Human capital, the structure of production, and growth." The Review of Economics and Statistics 91.1: 66-82

-Dell, Melissa, Benjamin F. Jones, and Benjamin A. Olken. (2012) "Temperature shocks and economic growth: Evidence from the last half century." American Economic Journal: Macroeconomics (2012): 66-95.

Pre-requisites

Material covered in the Econometrics and Macroeconomics courses of the 1st year Autumn semester of the MScE program.

Evaluation

First attempt

Exam:

Written 2h00 hours

Documentation:

Not allowed

Calculator:

Allowed

Evaluation:

- In Class Presentation of a research paper: 30%. Students should choose one among the suggested papers and present it in class (Sessions 6 to 14). There will be the opportunity to discuss how the paper fits with the course material and answer questions either from the instructors or from other students.

Please note: The length of the presentation and the number of students assigned to a paper will depend on the number of students enrolled in the course, so there might be changes on this.

-Participation and Questions: 10%. Before each class in which the peers will be presenting, students are asked to choose one of the papers that will be presented and send one or more questions. These questions may also refer to the material discussed in the previous class. This, together with the students' participation in class activities, is worth 10% of the final grade.

-Final exam: 60% (2h). Covering lecture notes and topics presented in class.

Retake

Exam:

Written 2h00 hours

Documentation:

Not allowed

Calculator:

Allowed

Evaluation:

The make-up exam stands alone: the previous results (presentation / participation / final exam) will not be taken into account. Documentation will not be allowed in all exams.