Introduction to Modern Economic Growth - Hardcover

Acemoglu, Daron

Hardcover

ISBN 10: 0691132925 ISBN 13: 9780691132921

Verlag: Princeton Univers. Press, 2008

Inhaltsangabe

Introduction to Modern Economic Growth is a groundbreaking text from one of today's leading economists. Daron Acemoglu gives graduate students not only the tools to analyze growth and related macroeconomic problems, but also the broad perspective needed to apply those tools to the big-picture questions of growth and divergence. And he introduces the economic and mathematical foundations of modern growth theory and macroeconomics in a rigorous but easy to follow manner.


After covering the necessary background on dynamic general equilibrium and dynamic optimization, the book presents the basic workhorse models of growth and takes students to the frontier areas of growth theory, including models of human capital, endogenous technological change, technology transfer, international trade, economic development, and political economy. The book integrates these theories with data and shows how theoretical approaches can lead to better perspectives on the fundamental causes of economic growth and the wealth of nations.


Innovative and authoritative, this book is likely to shape how economic growth is taught and learned for years to come.

• Introduces all the foundations for understanding economic growth and dynamic macroeconomic analysis
  


• Focuses on the big-picture questions of economic growth
  


• Provides mathematical foundations
  


• Presents dynamic general equilibrium
  


• Covers models such as basic Solow, neoclassical growth, and overlapping generations, as well as models of endogenous technology and international linkages
  


• Addresses frontier research areas such as international linkages, international trade, political economy, and economic development and structural change
  


• An accompanying Student Solutions Manual containing the answers to selected exercises is available (978-0-691-14163-3/$24.95). See: https://press.princeton.edu/titles/8970.html.
  


• For Professors only: To access a complete solutions manual online, email us at: acemoglusolutions@press.princeton.edu
  

Über diesen Titel

Über die Autorin bzw. den Autor

Daron Acemoglu is the Charles P. Kindleberger Professor of Applied Economics at the Massachusetts Institute of Technology.

Von der hinteren Coverseite

"Reading Daron Acemoglu's massive and masterly survey makes me feel like one of the Wright brothers coming face to face with a Boeing 747 for the first time. The range is enormous, from the simplest model to the political economy of growth, and everything is traced back to fundamentals with great skill and care. Being stranded on a desert island with this book and a large pad of paper would be a pleasure."--Robert M. Solow, Nobel Laureate in Economics

"Daron Acemoglu's Introduction to Modern Economic Growth takes the reader on a fascinating journey to discover the foundations of major growth theories, from the neoclassical paradigm to the most recent endogenous growth models. This book is required reading for anyone who wants to master the fields of growth and development economics."--Philippe Aghion, Harvard University

"This book is impressive in both its breadth and its depth. It offers an ideal access point to the current frontier in growth theory; readers will find a remarkably thorough treatment of all the key models and technical tools of dynamic macroeconomics. At the same time, real-world economic and policy issues always remain in sharp focus, thanks to a constant back-and-forth between theory, the most recent empirical studies, and the lessons of economic history. It will quickly become a much-thumbed book on the shelf of all those interested in growth, development, and macroeconomics."--Roland J. M. Benabou, Princeton University

"This is much more than a textbook on growth theory; it is a milestone in macroeconomics. It provides a unified approach to the study of economic dynamics, including a rigorous yet teachable background in recursive methods and dynamic optimization, and an impressive range of macroeconomic topics. What is most fascinating is the tour of the state-of-the-art literature on long-run development to which the author has been a leading contributor."--Fabrizio Zilibotti, University of Zurich

"An extraordinary achievement by an extraordinary intellect, this book provides a remarkably comprehensive overview of modern growth economics as well as a window into Daron Acemoglu's fundamentally important perspectives and insights. For years to come, it will be a cornerstone for advanced teaching and an invaluable resource for researchers. It represents economics at its most profound."--Steven N. Durlauf, University of Wisconsin-Madison

"This book will be a landmark in growth economics. Its scope and depth are remarkable, and the benefits of this new synthesis are clear. Many of the chapters are likely to prompt ideas for further research, and the book will be a major event for researchers and graduate students alike."--Jonathan Temple, University of Bristol

"This is a pathbreaking, fundamentally important work."--Charles Jones, University of California, Berkeley

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INTRODUCTION TO MODERN ECONOMIC GROWTH

By DARON ACEMOGLU

PRINCETON UNIVERSITY PRESS

Copyright © 2009 Princeton University Press
All right reserved.
ISBN: 978-0-691-13292-1

Contents

Preface........................................................................................xvChapter 1 Economic Growth and Economic Development: The Questions..............................3Chapter 2 The Solow Growth Model...............................................................26Chapter 3 The Solow Model and the Data.........................................................77Chapter 4 Fundamental Determinants of Differences in Economic Performance......................109Chapter 5 Foundations of Neoclassical Growth...................................................147Chapter 6 Infinite-Horizon Optimization and Dynamic Programming................................182Chapter 7 An Introduction to the Theory of Optimal Control.....................................227Chapter 8 The Neoclassical Growth Model........................................................287Chapter 9 Growth with Overlapping Generations..................................................327Chapter 10 Human Capital and Economic Growth...................................................359Chapter 11 First-Generation Models of Endogenous Growth........................................387Chapter 12 Modeling Technological Change.......................................................411Chapter 13 Expanding Variety Models............................................................433Chapter 14 Models of Schumpeterian Growth......................................................458Chapter 15 Directed Technological Change.......................................................497Chapter 16 Stochastic Dynamic Programming......................................................537Chapter 17 Stochastic Growth Models............................................................566Chapter 18 Diffusion of Technology.............................................................611Chapter 19 Trade and Growth....................................................................648Chapter 20 Structural Change and Economic Growth...............................................697Chapter 21 Structural Transformations and Market Failures in Development.......................725Chapter 22 Institutions, Political Economy, and Growth.........................................781Chapter 23 Political Institutions and Economic Growth..........................................831Epilogue: Mechanics and Causes of Economic Growth..............................................861Appendix A Odds and Ends in Real Analysis and Applications to Optimization.....................877Appendix B Review of Ordinary Differential Equations...........................................917Appendix C Brief Review of Dynamic Games.......................................................934Appendix D List of Theorems....................................................................944References.....................................................................................949Name Index.....................................................................................971Subject Index..................................................................................977

Chapter One

Economic Growth and Economic Development: The Questions

1.1 Cross-Country Income Differences

There are very large differences in income per capita and output per worker across countries today. Countries at the top of the world income distribution are more than 30 times as rich as those at the bottom. For example, in 2000, gross domestic product (GDP; or income) per capita in the United States was more than $34,000. In contrast, income per capita is much lower in many other countries: about $8,000 in Mexico, about $4,000 in China, just over $2,500 in India, only about $1,000 in Nigeria, and much, much lower in some other sub-Saharan African countries, such as Chad, Ethiopia, and Mali. These numbers are all in 2000 U.S. dollars and are adjusted for purchasing power parity (PPP) to allow for differences in relative prices of different goods across countries. The cross-country income gap is considerably larger when there is no PPP adjustment. For example, without the PPP adjustment, GDP per capita in India and China relative to the United States in 2000 would be lower by a factor of four or so.

Figure 1.1 provides a first look at these differences. It plots estimates of the distribution of PPP-adjusted GDP per capita across the available set of countries in 1960, 1980, and 2000. A number of features are worth noting. First, the 1960 density shows that 15 years after the end of World War II, most countries had income per capita less than $1,500 (in 2000 U.S. dollars); the mode of the distribution is around $1,250. The rightward shift of the distributions for 1980 and 2000 shows the growth of average income per capita for the next 40 years. In 2000, the mode is slightly above $3,000, but now there is another concentration of countries between $20,000 and $30,000. The density estimate for the year 2000 shows the considerable inequality in income per capita today.

The spreading out of the distribution in Figure 1.1 is partly because of the increase in average incomes. It may therefore be more informative to look at the logarithm (log) of income per capita. It is more natural to look at the log of variables, such as income per capita, that grow over time, especially when growth is approximately proportional, as suggested by Figure 1.8 below. This is for the simple reason that when x (t) grows at a proportional rate, log x (t) grows linearly, and if x₁ (t) and x₂ (t) both grow by the same proportional amount, log x₁ (t) – log x₂ (t) remains constant, while x₁ (t) – x₂ (t) increases.

Figure 1.2 shows a similar pattern, but now the spreading is more limited, because the absolute gap between rich and poor countries has increased considerably between 1960 and 2000, while the proportional gap has increased much less. Nevertheless, it can be seen that the 2000 density for log GDP per capita is still more spread out than the 1960 density. In particular, both figures show that there has been a considerable increase in the density of relatively rich countries, while many countries still remain quite poor. This last pattern is sometimes referred to as the "stratification phenomenon," corresponding to the fact that some of the middle-income countries of the 1960s have joined the ranks of relatively high-income countries, while others have maintained their middle-income status or even experienced relative impoverishment.

Figures 1.1 and 1.2 demonstrate that there is somewhat greater inequality among nations today than in 1960. An equally relevant concept might be inequality among individuals in the world economy. Figures 1.1 and 1.2 are not directly informative on this, since they treat each country identically regardless of the size of its population. An alternative is presented in Figure 1.3, which shows the population-weighted distribution. In this case, countries such as China, India, the United States, and Russia receive greater weight because they have larger populations. The picture that emerges in this case is quite different. In fact, the 2000 distribution looks less spread out, with a thinner left tail than the 1960 distribution. This reflects the fact that in 1960 China and India were among the poorest...

Details zur Ausgabe

• Verlag: Princeton Univers. Press
• Erscheinungsdatum: 2008
• Sprache: Englisch
• ISBN 10: 0691132925
• ISBN 13: 9780691132921
• Einband: Gebundene Ausgabe
• Anzahl der Seiten: 1008
• Kontakt zum Hersteller: Princeton University Press; https://press.princeton.edu/books; ; 7th Floor, New South Building; PRINCETON; NJ; 8544; USA
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