Growth Theories (ECON405) | GSÜ - ECTS Information Guide

Content

Objective

This course aims to lecture principal growth models, and is an introduction to the methods for studying simple deterministic dynamical systems.

Course Content

Introduction to keynesian and neoclassical growth theories.

Course Learning Outcomes

1- To learn necessary tools to study simple dynamical systems.
2- To make an analytical study.
3- To study principal growth models in a critical way in theoretical level.
4- To check the practical validity of these models by testing them by the stylised facts of Kaldor.

References

Barro et Sala-i Martin, Economic Growth.
Lecaillon, Macro-dynamique : la croissance.
Chiang, Fundamental methods of mathematical economics.
Sydsaeter, Hammond, Essential mathematics for economic analysis.
Sydsaeter, Hammond, Mathematics for economic analysis.
Simon, Blume, Mathematical economics.

Weekly Contents

Theory Topics
Week	Weekly Contents
1	Discrete and continuous growth rate. Fundamental knowledge on simple difference equations and differential equations. Interst rate and optimal timing problems.
2	Harrod model for good market in discrete and continuous time. Existence, unicity and stability of equilibrium.
3	Harrod model for factor market, and existence, unicity and stability of equilibrium.
4	Neoclassical production function. Concavity and homogeneity. Inada conditions.
5	Neoclassical model. Simultaneous determination of quantities and prices. Existence of equilibrium growth rate.
6	Neoclassical model. Existence, unicity and stability of equilibrium.
7	Comparative dynamics. Golden rule path.
8	Midterm.
9	Exogenous technical progress and its classifications.
10	Neoclassical model with technical progress. Existence of equilibrium growth rate. Existence, unicity and stability of equilibrium.
11	Comparative dynamics with technical progress. Stylised facts of Kaldor.
12	Absolute and relative convergence. Neoclassical model reconsidered.
13	The work of Mankiw, Romer, Weil. The critic of Paul Romer and the necessity of endogenous technical progress.
14	Endogenous growth of ancient generation: learning by doing I-II.

Assessment System

Contribution to Overall Grade
Activities	Number	Contribution
Contribution of in-term studies to overall grade	0	0
Contribution of final exam to overall grade	0	0
Total	0	0

In-Term Studies
Activities	Number	Contribution
Assignments	0	0
Presentation	0	0
Midterm Examinations (including preparation)	21	0
Project	0	0
Laboratory	0	0
Other Applications	0	0
Quiz	0	0
Term Paper/ Project	0	0
Portfolio Study	0	0
Reports	0	0
Learning Diary	0	0
Thesis/ Project	0	0
Seminar	0	0
Other	0	0
Total	21	0

Relation of Proficiency

No	Program Learning Outcomes	Contribution
No	Program Learning Outcomes	1	2	3	4	5
1	Demonstrate a basic knowledge of different economic theories and main discussions driving current theoretical approaches					X
2	Demonstrate ability to use basic qualitative and quantitative methods to asses different economic questions of applied fields					X
3	Show a sound understanding of current economic discussions and problems					X
4	Have an effective and clear communication in written and oral formats in different public and professional contexts.
5	Demonstrate basic knowledge of the world economic history and a sound knowledge of the Turkish economic history
7	Demonstrate knowledge of standard quantitative techniques and empirical models used in economics
8	Show ability to apply basic economic theory to an applied topic
9	Show a basic understanding of analytical methods, both theory- and model-based					X
10	Show ability to use economic concepts to discuss current economic issues					X
11	Reason logically and work analytically					X
12	Show awareness on social aspects of the economics in different applied and theoretical fields
13	Identify appropriate economic models to analyse problems					X
16	Show understanding of basic statistical and econometric concepts and ability to apply basic concepts to own empirical work
17	Demonstrate a sound knowledge of the current economic issues in Turkey and a general knowledge of the issues in the world economy