Growth Theory

Program Type:

Non Thesis

Course Code:

ECON 508

Course Type:

Elective

P:

3

Credits:

3

ECTS:

10

Course Language:

English

Courses given by:

Nuri Vedit İNAL

Course Objectives:

The aim of the course is to analyze the factors that lead to higher rates of growth and to increased levels of per capita incomes.

Course Content:

The course begins with an analysis of the problems posed by Harrod and Domar and answered by Solow. Solow's neoclassical approach is criticized on the basis of the controversies in the theory of capital and the neo-Keynesian solution to Harrod and Domar is examined. We then turn to endogenous growth models and analyze Romer's, and Lucas' models. The AK models are also anlyzed. In the last part of the class Schumpeterian evolutionary theories are examined together with institutionalist theories of growth. The impacts of science, education, R&D, innovation and institutions are evaluated. The course ends with a brief discussion of the growth experience and prospects of Turkey.

Teaching Methods:

Lecture, Question-Answer, Discussion, Case Study

Assessment Methods:

Testing, Experiment, Homework, Quiz

Vertical Tabs

Course Learning Outcomes

1. Being clear about the differences between the per capita income levels between countries.

2. Being able to see the logic behind the alternative growth models.

3. Having a good understanding of the factors that lead to higher rates of growth and higher per capita incomes.

4. Being clear about the roles of education and research and development in determining the growth rate and the level of per capita incomes.

5. Being clear about the role of institutional developments in determining the rate of growth and per capita incomes.

Course Flow

COURSE CONTENT
Week	Topics	Study Materials
1	Introduction: Understanding Growth and Some Stylized Facts	Charles Jones, Introduction to Economic Growth, 2002, Chs. 10 and 1, Appendix A, Vedit İnal, Büyüme Teorisinin Gelişimi ve Türkiye'nin Büyüme Sorunları, 2013, pp. 1-9.
2	Exogenous Growth Theories I: Roy Harrod and Evsey Domar	Vedit İnal, Büyüme Teorisinin Gelişimi ve Türkiye'nin Büyüme Sorunları, pp. 39-46.
3	Exogenous Growth Theories II: Solow’s Response to Harrod and Domar	Charles Jones, Introduction to Economic Growth, 2002, Ch. 2, Vedit İnal, Büyüme Teorisinin Gelişimi ve Türkiye'nin Büyüme Sorunları, pp. 46-72.
4	Exogenous Growth Theories III: Solow Model with Human Capital - The Model by Mankiw, Romer & Weil	Charles Jones, Introduction to Economic Growth, 2002, Ch. 3, Vedit İnal, Büyüme Teorisinin Gelişimi ve Türkiye'nin Büyüme Sorunları, pp. 72-87.
5	The Controversy on the Theory of Capital: the Problem with the Neoclassical Production Function
6	Neo-Keynesian Response to Harrod Domar Problem
7	Endogenous Growth Theories I: Nelson and Phelps' Early Endogenous Growth Model	Vedit İnal, Büyüme Teorisinin Gelişimi ve Türkiye'nin Büyüme Sorunları, pp. 89-94.
8	MID-TERM
9	Endogenous Growth Theories II: Research and Development and Paul Romer and Charles Jones' Theory	Charles Jones, Introduction to Economic Growth, 2002, Chs. 4,5 and 6 Vedit İnal, Büyüme Teorisinin Gelişimi ve Türkiye'nin Büyüme Sorunları, pp. 89-127.
10	Endogenous Growth Theories III: Human Capital and Robert Lucas' model and Sergio Rebelo's AK Model	Charles Jones, Introduction to Economic Growth, 2002, Ch. 8, Vedit İnal, Büyüme Teorisinin Gelişimi ve Türkiye'nin Büyüme Sorunları, pp. 127-141.
11	Schumpeter and Evolutionary Theories of Economic Growth
12	The Roles of Education, Science, Technology, R&D and Innovation on Growth
13	Institutions and Growth	Vedit İnal, Büyüme Teorisinin Gelişimi ve Türkiye'nin Büyüme Sorunları, pp. 143-167.
14	Institutionalist History of the Middle Eastern Underdevelopment and Growth Prospects of Turkey	Vedit İnal, ‘The Eighteenth and Nineteenth Century Ottoman Attempts to Catch Up with Europe’, The Middle Eastern Studies, vol. 47, No. 5, September 2011, pp. 725-756. Vedit İnal (2015) ‘Türkiye’nin Büyüme Potansiyeli’, Türkiye Ekonomi Kurumu 18. Ulusal İktisat Sempozyumu: Tasarruf, Sürdürülebilir Büyüme ve Teknolojik Gelişme’ Konya, 8-9 Ekim.

Recommended Sources

RECOMMENDED RESOURCES
Textbook		Charles Jones (2002) Introduction to Economic Growth, Ch.8. Vedit İnal (2013), Büyüme Teorisinin Gelişimi ve Türkiye’nin Büyüme Sorunları, pp. 127-141.
Additional Resources		Additional redings will be supplied during the course

Material Sharing

MATERIAL SHARING
Documents		Lecture notes, Textbook, Articles and Books
Assignments
Exams		A Midterm and a Final

Assessment

IN-TERM STUDIES	NUMBER	PERCENTAGE
Mid-terms	1	50
Quizzes (attendance, presentation, etc.)	0
Assignments	0
	Total	100
Contribution of the Final Examination to Overall Grade	1	50
Contribution of the in-Term Studies to Overall Grade	1	50
	Total	100

Course’s Contribution to Program

No	Program Learning Outcomes	Contribution
		1	2	3	4	5
1	Formulate and develop a critical and comprehensive understanding of global and national economic problems, and construct and design practical solutions;					x
2	Extract information and concepts from various disciplines in social sciences and integrate them under the rubric of economics;					x
3	Construct testable hypotheses to find original, practical solutions to various social ills and problems;			x
4	Develop an analytical understanding of economic problems, and the ability to evaluate the inherent logic, assumptions and conclusions of alternative approaches;					x
5	Develop the necessary technical skills to evaluate alternative approaches in economics;					x
6	Formulate research projects, plan and conduct research in social sciences in general and in economics in particular;			x
7	Present the results of their research in national and international conferences and in scientific and professional venues;			x
8	Apply the scientific / academic modes of thought and analysis to their professional lives and form a bridge between the analytical and abstract modes of thinking of academia and the practical and dynamic skills of business life.		x

ECTS

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Course Duration (Including the Exam Week: 15 x total course hours)	15	3	45
Hours for off-the-classroom study (Pre-study, practice)	15	10	150
Mid-terms	1	10	10
Quizzes (attendance, presentation, etc.)	3	3	9
Assignments	2	7	14
Final Examination	1	10	10
Total Work Load			238
Total Work Load / 25 (s)			9.52
ECTS Credit of the Course			10

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