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DRPS : Course Catalogue : School of Economics : Economics

Undergraduate Course: Capital and Growth Theory (ECNM10006)

Course Outline
SchoolSchool of Economics CollegeCollege of Humanities and Social Science
Credit level (Normal year taken)SCQF Level 10 (Year 4 Undergraduate) AvailabilityAvailable to all students
SCQF Credits20 ECTS Credits10
SummaryHow does the economy grow over time? What determines the rate of growth and the functional distribution of income (the division of GNP between wages and profits)? What is the optimal rate of growth? Can and should the government intervene to influence the growth process? The aim of this course is to acquaint students with recent developments in economic growth theory and its answers to these important questions, building on the coverage of economic analysis in years 1 and 2.
Course description Topics covered include: general equilibrium and growth theory; the neoclassical one-sector (Solow-Swan) and two-sector (Uzawa) models; functional distribution of income; optimal growth, the golden rule; Ramsey utility and dynamic optimisation; exogenous technical progress; endogenous growth theory, AK model; human capital and two sector endogenous growth models; endogenous technical progress; Schumpeterian growth theory; economic growth and the environment. .

The course is taught through a programme of lectures. Learning-by-doing, through groupwork and presentations, is an important ingredient of the course.
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Students MUST have passed: Economics 2 (ECNM08006)
Prohibited Combinations Other requirements Economics Honours entry or permission of the course organiser.
Additional Costs None
Information for Visiting Students
High Demand Course? Yes
Course Delivery Information
Not being delivered
Learning Outcomes
On completion of this course, the student will be able to:
  1. A knowledge and understanding of key issues in the analysis of economic growth, including principles, models and associated mathematical techniques, along with applications and policy implications of those models and a deeper understanding of recent research activity in some more specialised areas.
  2. Research and investigative skills such as problem framing and solving and the ability to assemble and evaluate complex evidence and arguments.
  3. Communication skills in order to critique, create and communicate understanding and to collaborate with and relate to others.
  4. Personal effectiveness through task-management, time-management, teamwork and group interaction, dealing with uncertainty and adapting to new situations, personal and intellectual autonomy through independent learning.
  5. Practical/technical skills such as, modelling skills (abstraction, logic, succinctness), qualitative and quantitative analysis and general IT literacy.
Reading List
There is no single textbook for the course, but extensive use will be made of:

Barro, R J and X Sala-i-Martin (2004) Economic Growth (2nd ed.), MIT Press

Aghion, P and P. Howitt, (2009) The Economics of Growth, MIT Press

George, D A R, L T Oxley and K I Carlaw (eds) (2004) Surveys in Economic Growth: Theory and Empirics, Blackwell.

Further readings will be provided for each topic.
Additional Information
Graduate Attributes and Skills See Learning Outcomes
Course organiserMr Donald George
Tel: (0131 6)50 3849
Course secretaryMs Dawn Everett
Tel: (0131 6)51 5958
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