The University of Alberta DEPARTMENT OF ECONOMICS
Economics 222
Technology, Institutions, and Economic Growth
Scott Auriat Fall 2020
Email: [email protected] provided via Zoom by appointment
This course provides a broad survey of the causes of economic growth. The course will offer an in- troduction to basic growth models, the determinants of technological process, and the fundamental causes of growths. While using models as building blocks the course will also look at qualitative theories that are more historical and interdisciplinary in nature.
Thetextbookfor the course is: Economic GrowthbyDavid Weil – Third Edition
The textbook will be provided for free via e class and can be found on the U of A library. Students should realize that the lectures will cover material not available in the textbook.
Grading:
Assignment-1 (Sept 25 by 4pm MST: hand in on eclass) 15 %
Midterm-1 (Oct 6 on eclass @ 10:00 AM) 20 %
Midterm-2 (Nov 10 on eclass @ 10:00 AM) 20 %
Assignment-2 (Nov 27 by 4pm MST: hand in on eclass) 15 %
Final Exam (11-Dec-2020 on eclass (Friday) @ 9:00 a.m) 30 %
The instructor assigns letter grades at the end of the course in a manner that ensures that a change of one or two points in numerical grade does not cause a change in letter grade. There is no fixed formula for converting numerical grades to letter grades, though the instructor seeks to achieve an appropriate class average.
The University of Alberta is committed to the highest standards of academic integrity and hon- esty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behavior (online atcode of student behavior) and avoid any behaviour which could potentially result in suspicions of cheating, plagiarism, mis- representation of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result in suspension or expulsion from the University.
Missed exams:
1) Note that the University has made a change to the policy regarding missed midterm exams and other term work. Medical notes can no longer be required, in the event of such missed work. The student may choose to provide a Medical Declaration Form, but again, that is not a requirement.
HOWEVER, the instructor will still have some discretion as to whether or not the work will be made up, or the weight transferred to the final exam. As noted previously, if you skip the midterm you will simply write a different one along with your final. Instructors may also require documentation regarding missed work in some cases. Refer to section 23.4(3) of the Calendar.
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2) If you miss the final exam for a valid medical reason or severe domestic affliction, you may apply to your own Faculty for the privilege of a re-write. Please refer to section 23.5.6 of the University Calendar for the proper procedure. The Faculties of Arts and Science require that the student complete a Statutory Declaration in support of their request for a deferred final.
Assignment-1
Find an invention or innovation that changed the world, describe who invented it (note does not need to be one person, could be many). Describe how it changed the world. Describe the incentives the inventor or innovator had, why did they do what they did? (again could be many different people). Finally, how does it related to the growth theories discussed in class?
Answer should be about 4 pages double spaced 12 point font.
Assignment-2
Listen to a podcast that interviews someone about economic growth (I will provide many on e- class, or choose your own). Summarize the arguments made by the person being interviewed. Note:
it doesn’t necessarily have to be a economist, could be a historian or anthropologist for example.
Answer should be about 4 pages double spaced 12 point font.
Course Outline and Reading List
The course will consist of chapters from the textbook along with notes written by myself to be included on eclass. Note that while the notes usually follow the textbook there are times when the notes are not directly inline with the textbook and importantly the notes will cover additional material. The exams will text both the notes and the textbook. The course will roughly follow the progression below. Note: while models that are derived using calculus will be discussed students do not need to know calculus. It is suggested students brush up on basic math such as exponents and logarithms (review materials will be provided on e class)
Week 1Chapter 1 of textbook and notes. Introduction to economic growth read entire chapter
(ignore Appendix)
Week 2Chapter 2 of textbook and notes. Building a model of economic growth Pages 150-154 – (ignore: Modeling the Interaction of Health and Income)
Week 3Chapter 3 of textbook and notes. The Solow Growth Model with physical capital Pages 48-63 – (ignore: The Solow Model as a Theory of Income Differences)
Pages 66-75 (ignore Appendix)
Week 4Chapter 3 of textbook and notes. From the Solow Growth Model to the Neo-classical model and the Macro Euler
Week 5Chapter 6 of textbook and notes. Human Capital, what is it and how do we add it to the model?
Pages 150-154 – (ignore: Modeling the Interaction of Health and Income)
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pages 158-169 – Section 6.2, 6.3 (ignore: A Quantitative Analysis of the Impact of Schooling Dif- ferences among Countries)
pages 175- 176 – (Important: read section on Externalities)
Week 6Chapter 7 of textbook and notes. How do we measure productivity?
Pages 192-196 – (read Intro and 7.3 only)
Week 7Chapter 8 of textbook and notes. The role of technology in growth Pages 201-211 – (read Intro, 8.1 and 8.2)
(ignore Appendix)
Week 8Chapter 9 of textbook and notes. What are the technologies of the future? A fun look at futuristic technologies
(ignore Appendix)
Week 9 Chapter 10 of textbook and notes. Moving toward the fundamental causes of growth.
Decomposing Efficiency and Technology
Week 10 Chapter 12 of textbook and notes. Institutions: what are they, and how do the cause growth?
Pages 330-339 – (read Intro, 8.1 and 8.2)
Pages 358-359 –(read: Causation Running from Government Quality to Income) read: Institutions as the Fundamental Cause of Long–Run Growth by Daron Acemoglu, Simon Johnson, and James Robinson –Pages 11-20 (Section 2 and 3, provided on e class)
Week 11Chapter 14 of textbook and notes. Culture: what is it, and how does it cause growth read entire chapter
Week 12Chapter 15 of textbook and notes. Geography: what is it, and how does it cause growth read entire chapter
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