After successful completion of the course, students are able to:

• list key empirical relationships related to economic growth;
• critically assess the basic theoretical models in economic growth that try to explain the key empirical relationships;
• set-up and solve theoretical models to analyse issues in economic growth;
• analyze models of economic growth, e.g., compare their equilibrium predictions to the data;
• assess fiscal policy within the models;
• construct extensions of these basic models independently.

Topics include:

1. Overview on economic growth and economic development
2. The Solow-Swan model as a starting point in growth theory
3. The Ramsey-Cass-Koopmans model as the central workhorse
4. Technology diffusion around the world
5. Growth and subsistence consumption
6. Growth with overlapping generations
7. Human capital and economic growth
8. First-generation models of endogenous growth
9. Models of endogenous technological change
10. Growth, development, and exhaustible resources

• This is an interactive course and students have to be ready to work actively;
• Stylized facts about economic growth and macroeconomic theories of growth are discussed;
• Rigorous exposition of theoretical models including detours to clarify methods and illustrative examples are used throughout the presentation to provide deeper insights to the theoretical issues;
• Self-study, i.e., autonomous work by students on all material covered in class;
• Regular homework assignments related to particular topics are distributed and have to be solved by students in an accompanying course (105.647, UE);
• Students are encouraged to make use of office hours, which are meant to clarify specific problems students may have.

Solution of Problems as practiced in the homework assignments.

• 105.606 Macroeconomics for WM (VO)
• 105.605 Microeconomics for WM (VO)
• 105.690 Advanced Macroeconomics (VO)
• 105.691 Advanced Macroeconomics (SE)