Special Topics in Economic Growth and Development

Transcription

1 Economics 844/ Spring 2013 Prof. Shigeru Iwata 415B Snow Hall Special Topics in Economic Growth and Development Course Content: This course surveys selected recent developments both theoretical and empirical in economic growth and development from a macro perspective. Texts: General reference text for the course is: Barro, R, and X. Sala-i-Martin (2003), Economic Growth, MIT Press. (Theory and Empirics) Other useful books are: Acemoglu, D. (2009) Introduction to Modern Economic Growth, Princeton University Press. (Nice but Theory only) Barro, R (1998) Determinants of Economic Growth: A Cross-Country Empirical Study, MIT Press. Aghion, P and P. Howitt (1998), Endogenous Growth Theory, MIT Press. Helpman, E (2003), The Mystery of Economic Growth, Harvard University Press. Grossman, G. and H. Helpman (1993), Innovation and Growth in the Global Economy, MIT Press. Easterly, W (2001) The Elusive Quest for Growth, MIT Press. Easterly, W (2006) The Whiteman s Burden, Penguin Press Sachs, J. D. (2005) The End of Poverty: Economic Possibilities for Our Time, Penguin Books Articles can be downloaded from the journal websites (link from the University Library homepage to the journals collection), from JSTORE, Science Direct or from the NBER Working papers site ( For most working papers, try If you have trouble locating a particular article, please let me know and I will make copies available. Requirements: (1) Report, (2) Presentation. Reports By the end of the course you must hand in a detailed referee report on a paper that is related to the course s topic. The paper can be chosen by you subject to previous approval from me, or by me if you don t have preferences. The paper can be either published or unpublished. The report must contain a brief summary of the paper (two paragraphs absolute maximum), and then a detailed discussion of why or why not it deserves publication in, say, the Quarterly Journal of Economics, and what can be done to make it publishable. The report is due on the last meeting of the course.

2 Presentations You must choose one topic and make a class presentation/lecture on that topic (45 60 minutes). You should provide a reading list on your topic and may make a handout. The presentation should cover the established literature on that topic but should also cover the most state-of-the-art research. 1. Development Accounting READING LISTS McGrattan and Shmitz: Explaining Cross-Country Income Differences, Handbook of Macroeconomics. Jones: On the Evolution of the World Income Distribution, Journal of Economic Perspectives, Summer 1997, Vol. 11, pp Mankiw, Romer, and Weil: A Contribution to the Empirics of Economic Growth, Quarterly Journal of Economics, 107, 2, 1992, Young (1995): The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience, Quarterly Journal of Economics, 110, Mankiw (1995): The Growth of Nations, Brookings Papers on Economic Activity, I, (with Paul Romer s Comments). Hall and Jones: Why do Some Countries Produce so Much More Output per Worker than Others? Quarterly Journal of Economics, 1999, (Only Sections I and II). Klenow and Rodriguez-Clare: The Neoclassical Revival in Growth Economics: Has it Gone Too Far? NBER macro annual 1997, (Including Discussions). Hendricks (2002): Cross-Country Income Differences: Technology Gaps or Human Capital Gaps? Evidence from Immigrant Earnings American Economic Review. Prescott: Needed: A Theory of Total Factor Productivity. International Economic Review. Vol. 39 (3). p August William Easterly and Ross Levine: It s Not Factor Accumulation: Stylized Facts and Growth Models, World Bank Working Paper, Barro, R. Determinants of Economic Growth : A Cross-Country Empirical Study, 1998, MIT Press. Chapter 1. Caselli, Esquivel, and Lefort: Reopening the Convergence Debate: A New Look at Cross- Country Growth Empirics, Journal of Economic Growth, Caselli (2003): The Missing Input: Accounting for Cross-Country Income Differences, Harvard University. 2. Financial Development and Convergence Aghion, P, Howitt, P, and D. Mayer (2003), The Effect of Financial Development on

3 Convergence, mimeo Harvard-Brown Beck, Thorsten, Ross Levine, and Norman Loayza (2000): Finance and the Sources of Growth. Journal of Financial Economics 58, Greenwood, Jeremy, and Boyan Jovanovic (1990): Financial Development, Growth, and the Distribution of Income. Journal of Political Economy 98, Gri.th, Rachel, Stephen Redding, and John Van Reenen (2001): Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries. unpublished. Hall, Robert E. and Charles I. Jones (1999): Why Do Some Countries Produce so Much More Output per Worker than Others? Quarterly Journal of Economics 114, Howitt, P (2000): Endogenous Growth and Cross-Country Income Differences. American Economic Review, 90, Howitt, P, and D. Mayer-Foulkes (2002). R&D, Implementation and Stagnation: A Schumpeterian Theory of Convergence Clubs. NBER Working Paper Klenow, Peter J. and Andr es Rodr iguez-clare (1997): The Neoclassical Revival in Growth Economics: Has it Gone too Far? in Ben Bernanke and Julio Rotemberg, eds., NBER macroeconomics annual1997. Cambridge, MA: MIT Press, Keller, W (2002): Technology Diffusion and the World Distribution of Income: The Role of Geography, Language, and Trade. Unpublished, University of Texas. La Porta, Rafael, Florencio Lopez-de-Silanes, Andrei Shleifer, and RobertW. Vishny (1998): Law and Finance. Journal of Political Economy 106, Levine, Ross (1997): Financial Development and Economic Growth: Views and Agenda. Journal of Economic Literature 35, Levine, Ross, Norman Loayza, and Thorsten Beck (2000): Financial Intermediation and Growth: Causality and Causes. Journal of Monetary Economics 46, Mankiw, G, Romer, D and D. Weil (1992). A Contribution to the Empirics of Economic Growth. Quarterly Journal of Economics,107,: Parente, Stephen L., and Edward C. Prescott (1999): Monopoly Rights: A Barrier to Riches. American Economic Review 89, Pritchett, Lant (1997): Divergence, Big-Time. Journal of Economic Perspectives11, Contractual Enforcement Galor and Zeira (1993): Income Distribution and Macroeconomics, Review of Economic Studies. Rajan and Zingales (1998): Financial Dependence and Growth, Quarterly Journal of Economics. Banerjee, Abhijit, and Newman, Andrew: Occupational Choice and the Process of Development, Journal of Political Economy, (1993), 101: Gathak, Maitreesh, Morelli, Massimo, and Sjostrom, Tomas (2001): Occupational Choice

4 and Dynamic Incentives, Review of Economic Studies, 68: Gathak, Maitreesh, Morelli, Massimo, and Sjostrom, Tomas (2002): Credit Rationing, Wealth Inequality, and Allocation of Talent, unpublished. La Porta, Rafael, Lopez-De-Silanes, Florencio, and Shleifer, Andrei: Corporate Ownership Around the World, Journal of Finance,(1999), 54: Burkart, Mike, Panunzi, Fausto, and Shleifer, Andrei: Family Firms, NBER Working Paper, (2002). Chami, Ralph: What s Different About Family Businesses?, IMF Working Paper, (2001) Morck, Randall, Strangeland, David, and Yeung, Bernard: Inherited Wealth, Corporate Control, and Economic Growth: The Canadian Disease?, in Concentrated Corporate Ownership, Randall Morck ed., NBER Conference Volume, University of Chicago Press. Volpin, Paolo: Governance with Poor Investor Protection: Evidence from Top Executive Turnover in Italy, Journal of Financial Economics, 2002, 64: Caselli and Gennaioli (2003): Dynastic Management. Harvard University 4. Appropriate Technology Atkinson, Anthony B. and Stiglitz, Joseph E. A New View of Technological Change. Economic Journal (1969): Basu, Susanto; Weil, David N.: Appropriate Technology and Growth. The Quarterly Journal of Economics 113(4) (November 1998): Diwan, I. and Rodrik, D. Patents, Appropriate Technology, and North-South Trade, Journal of International Economics 30 (1991): Acemoglu, Daron and Fabrizio Zilibotti (2001). Productivity Differences, Quarterly Journal of Economics, May Caselli and Coleman (2003): The World Technology Frontier. Harvard University 5. Technology Diffusion Coe, David T., Elhanan Helpman, and Alexander W. Hoffmaister (1997), North-South R&D Spillovers, Economic Journal, 107, Coe, David T. and Elhanan Helpman (1995): International R&D Spillovers, European Economic Review 39, Keller, W (1998): Are International R&D Spillovers Trade Related? Analyzing Spillovers among Randomly Matched Trade Partners. European Economic Review, 42, Caselli and Coleman (2001): Cross-Country Technology Diffusion: The Case of Computers, AER P&P. Caselli and Wilson (2003): Importing Technology, Journal of Monetary Economics. 6. Agriculture and Development

5 Gollin, Parente, and Rogerson (2000): Farm Work, Home Work and International Productivity Differences, Working Paper. Gollin, Parente, and Rogerson (2001): Structural Transformation and Cross-Country Income Differences, Working Paper (University of California in Los Angeles). Graham and Temple (2003): Rich nations, poor nations: how much can multiple equilibria explain?, Working Paper No. 76 (Center for International Development, Harvard University). Restuccia, Yang, and Zhu (2003) Agriculture and Aggregate Productivity: A Quantitative Cross-Country Analysis, Working Paper (University of Toronto, Economics Department). Caselli and Coleman (2001): The U.S. Structural Transformation and Regional Convergence: A Reinterpretation, Journal of Political Economy 109(3): Ethnic Conflict McDermott (1997): Exploitation and Growth. Journal of Economic Growth. September. Easterly, William and Levine, Ross (1997). Africa s growth tragedy: policies and ethnic divisions. Quarterly Journal of Economics, 112, November, Grossman and Gershenson (2000): Civil Conflict: Ended or Never Ending?, Journal of Conflict Resolution, 44(6), Miguel, Edward (2000): Ethnic Diversity and School Funding in Kenya, unpublished, Berkeley.. Alesina, Baqir, and Easterly (1999). Public Goods and Ethnic Divisions. Quarterly Journal of Economics. Vol. 114 (4). p November Alesina and La Ferrara (2000): Participation in Heterogeneous Communities. Quarterly Journal of Economics, Vol. 115 (3). p August Berman, Eli (2003): Hamas, Taliban and the Jewish Underground: An Economists View of Radical Religious Militias., NBER Working Paper Berman, Eli (2000): A Sect, Subsidy and Sacrifice: An Economist s View of Ultra-Orthodox Jews, Quarterly Journal of Economics, August Caselli and Coleman (2002): On the Theory of Ethnic Conflict. Unpublished. Harvard. 8. Competition and Entry Aghion, P, Blundell, R, Gri.th, R, Howitt, P and S. Prantl (2003): Entry, Innovation, and Growth: Theory and Evidence, mimeo Harvard-IFS. Aghion, P, Bloom, N, Blundell, R, Griffith, R and P Howitt (2003) Competition and Innovation: An Inverted U Relationship NBER Working Paper No 9269 Aghion, P, Harris, C, Howitt, P and J. Vickers (2001), Competition, Imitation and Growth with Step-by-Step Innovation, Review of Economic Studies, vol. 68, pp Bloom, N. and Van Reenen, J. (2002), Patents, Real Options and Firm Performance, Economic Journal, vol. 112, no 478, C97-C116

6 Blundell, R., Gri.th, R. and Van Reenen, J. (1995), Dynamic Count Data Models of Technological Innovation, Economic Journal, Vol. 105, March 1995, Blundell, R., Griffth, R. and Van Reenen, J. (1999), Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms, Review of Economic Studies, vol. 66, Boone, J. (2000): Measuring Product Market Competition, CEPR Working Paper Geroski, P. (1995) Market Structure, Corporate Performance and Innovative Activity, Oxford: Oxford University Press. Martins, J, Scarpetta, S and Pilat, D (1996) Markup-up ratios in manufacturing industries: estimates for 14 OECD countries, OECD Working Paper No. 162 Nickell, S (1996): Competition and Corporate Performance, Journal of Political Economy, 104, Appropriate Institutions Acemoglu, Daron, Simon Johnson and James A. Robinson, (2001) Colonial Origins of Comparative Development: An Empirical Investigation, American Economic Review, 91, Acemoglu, Daron and Fabrizio Zilibotti, (1997) Was Prometheus Unbound by Chance? Risk Diversification and Growth. Journal of Political Economy, vol.105, pp Barro, Robert and Xavier Sala-i-Martin, (1997) Technological Diffusion, Convergence and Growth Journal of Economic Growth, 2, Dewatripont, Mathias and Eric Maskin, (1995) Credit and Efficiency in Centralized and Decentralized Economies, Review of Economic Studies, Vol. 62, No. 4., pp Djankov, Simeon, La Porta, Rafael, Lopez-de-Silanes, Florencio, and Andrei Shleifer, (2002) The Regulation of Entry, Quarterly Journal of Economics, vol. 117, Easterly, William and Ross Levine, (1997) Africa s Growth Tragedy: Policies and Ethnic Divisions. Quarterly Journal of Economics, vol. 112, Frankel, Je.rey and David Romer, (1999) Does Trade Cause Growth? American Economic Review, vol. 89, pp Gerschenkron, Alexander, (1962) Economic Backwardness in Historical Perspective, Harvard University Press, Cambridge MA. Hausmann, Ricardo and Dani Rodrik, (2002) Economic Development As Self-Discovery, Mimeo Harvard University. Kang, David, (2002) Crony Capitalism: Corruption and Development and South Korea and the Philippines, Cambridge, Cambridge University Press. Rajan, Raghu and Luigi Zingales (1999) Which Capitalism? Lessons from the East Asian Crisis Journal of Applied Corporate Finance, 11, Shleifer, Andrei and Robert Vishny, (1999) The Grabbing Hand : Government Pathologies and Their Cures, Harvard University Press, Cambridge MA

7 Stiglitz, Joseph E., (1995), Whither Socialism?, MIT Press. Cambridge, MA Tong, Jian and Chenggang Xu, (2001) Endogenous Financial Institutions, R&D Selection and Growth, Mimeo London School of Economics. 10. Education Azariadis, Costas and Allan Drazen, Threshold Externalities in Economic Development, Quarterly Journal of Economics,1990, Barro, Robert and Jong-Wha Lee, International Data on Educational Attainment: Updates and Implications, Working Paper no. 42, Center for International Development at Harvard University, April (With Appendix Data Set Downloadable from Bassanini, Andrea and Stefano Scarpetta, Does Human Capital Matter for Growth in OECD Countries? Evidence from Pooled Mean Group Estimates, OECD Economics Department Working Paper no , Benhabib,Jess and Mark M. Spiegel, The Role of human Capital in Economic Development: Evidence from Aggregate Cross-country Data, Journal of Monetary Economics, 1994, 34(2), Bils, Mark and Peter Klenow, Does Schooling cause Growth?, American Economic Review, 90 pp , Caselli, Francesco, Gerardo Esquivel and Fernando Lefort, Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics, Journal of Economic Growth, 1996, 1(3), Cohen, Daniel and Marcelo Soto, Growth and Human Capital: Good Data, Good Results, CEPR Discussion Paper no. 3025, De la Fuente, Angel and Rafael Domenech, Human Capital in Growth Regressions: How Much Difference Does Data Quality Make? An Update and Further Results, mimeo, August Krueger, Alan and Mikael Lindahl, Education for Growth: Why and For Whom?, Journal of Economic Literature, December 2001, 39, Nelson, Richard R. and Edmund S. Phelps, Investment in Humans, Technological Diffusion and Economic Growth, American Economic Review, 1966, 56 (1/2), Vandenbussche, J, Aghion, P, and C. Meghir (2004): Distance to the Technological Frontier and the Composition of Human Capital, mimeo Harvard 11. Volatility and Growth Aghion, P, Bacchetta, P, and A. Banerjee (2003), Financial Development and the Instability of Open Economies, NBER Working Paper #10246 Aghion, P, Banerjee, A, and T. Piketty (1999), Dualism and Macroeconomic Volatility, Quaterly Journal of Economics. Aghion, P, Angeletos, M, and A. Banerjee (2004), Volatility, Innovation, and Growth, notes.

8 Barlevy, G (2001), The Timing of Innovation in a Schumpeterian Model of Growth, mimeo, Northwestern. Francois, P, and H. Lloyd-Elis (2003), Animal Spirits Meets Creative Destruction, American Economic Review Jones, L, Manuelli, R, and E. Stacchetti (2000), Technology and Policy Shocks in Models of Endogenous Growth, mimeo Minnesota King, R, Plosser, C, and S. Rebelo (1988), Production, Growth, and Business Cycles, Journal of Monetary Economics. King, R, and S. Rebelo (1986), Business Cycles with Endogenous Growth, mimeo Ranciere, R, and A. Tornell (2003), Real Exchange Rate Risk, Growth, and Welfare, mimeo UCLA 12. Scale Effects and Quality versus Variety Aghion, P, Antras, P, Howitt, P, and S. Prantl (2004), Quality versus Variety Improvements as Engines of Growth, notes Aghion, P, and P. Howitt (2004): Growth with Quality-Improving Innovations: An Integrated Framework, draft chapter for the Handbook of Economic Growth Ha, J, and P. Howitt (2003), Accounting for Trends in Productivity and R&D: A Schumpeterian Critique of Semi-Endogenous Growth Theory, mimeo Brown. Howitt, P (1999), Steady Endogenous Growth with Population and R&D Inputs Growing, Journal of Political Economy Jones, C (1995), R&D-Based Models of Economic Growth, Journal of Political Economy Segerstrom, P (1998), Endogenous Growth Without Scale Effects, American Economic Review Young, A, (1999), Growth Without Scale Effects, Journal of Political Economy.