Economic growth and fluctuations

Academic year: 2010-2011 Course code module FTEMAJ0121 Semester: 1st semester Credits: 6 Study load (hours) 168 Theory (hours): 30,00 Practice/Exercises(hours): 15,00 Other (hours): Part-time program: Instructor(s) Guido Erreygers Language of instruction: English Semester exam information: exam in the 1st semester Contract restriction information: 1. Prerequisites *Algemene competenties none *Sequentiality None Prerequisites: learning outcomes Macroeconomics (FTEBAAE210) AND Microeconomics (FTEBAAE220) 2. Objectives (expected learning outcomes) To gain insight into the most important theories on economic growth To gain insight into some models that explain business cycle fluctuations To get acquainted with the empirics concerning growth and fluctuations 3. Course content In the first part of the course the most important economic theories of growth are studied. We start from the neo-classical growth model of Solow & Swan, and move toward more recent endogenous growth models, such as the Romer-model and the 'learning-by-doing' model. We analyze the importance of some crucial factors in the process of economic growth, such as technological progress, social institutions and government policy. We also focus on 'growth accounting' and the relation between economic growth and the natural environment (sustainable development, limits to economic growth). In the second part we deal with business cycle theories. By means of an extension of the 'Aggregate Demand'/'Aggregate Supply' model, we try to gain insight into the mechanism behind business cycle fluctuations. We also focus on the 'Real Business Cycle' model. 4. Teaching method Direct contact: Lectures Exercise sessions 5. Assessment method Exam: Written, without oral presentation Closed book Open questions Written assignment: Without oral presentation 6. Compulsory reading – study material Peter Birch SØRENSEN & Hans Jørgen WHITTA-JACOBSEN, Introducing Advanced Macroeconomics: Growth and Business Cycles, London, McGraw-Hill, 2010, 2nd edition. 7. Recommended reading - study material Charles I. JONES, Introduction to Economic Growth , New York and London, W.W. Norton, 2002, 2nd edition. Charles I. JONES, Macroeconomics, New York and London, W.W. Norton, 2008. 8. Tutoring / laatste aanpassing: last update: 31/08/2010 15:00 guido.erreygers