Creator: Backus, David and Kehoe, Patrick J. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Department) Number: 318 Abstract:
These notes are intended as a do-it-yourself course in economic growth along lines suggested by Lucas ("On the Mechanics of Economic Development"). We examine in turn the neoclassical growth model; theories of endogenous growth, including learning-by-doing, increasing returns to scale, and externalities; and dynamic comparative advantage in trade. Salient features of growing economies and microeconomic evidence on production processes are used to evaluate alternatives. Exercises supplement the text.
Keyword: Returns to scale, Neoclassical growth, Learning-by-doing, Dynamic comparative advantage, and Technical change Subject (JEL): F11 - Neoclassical Models of Trade, O42 - Monetary Growth Models, and O33 - Technological Change: Choices and Consequences; Diffusion Processes