Oslo Summer School in Comparative Social Science Studies 2015

Macro Development Economics: An Application to China

Lecturers: Professor Kjetil Storesletten and
Assistant Professor Yikai Wang,
Department of Economics,
University of Oslo, Norway

Main discipline: Economics

Dates: 27 - 31 July 2015
Course Credits: 10 pts (ECTS)
Limitation: 25 participants
- This PhD course was cancelled!


Objectives
China has been growing at a spectacular rate since the late 70s and is now the world’s second largest economy. Its growth has attracted increasing interests among the public and the economists. In this course, we will focus on various macro phenomena in China’s development, including growth, state capitalism, political institution, fertility, saving and pension, based on recent academic papers on China.

The objective of the course is two-fold. First, it will provide a comprehensive picture of China’s past political and economic developments. Based on this, we will then discuss China’s future developments. Second, by studying China, students will learn about various economics models and research techniques. We will discuss mostly macro models such as two-sector growth models, overlapping generation models, household life-cycle models and so on, but we will also cover some microeconomic models on political economy. Empirical facts and how to combine empirical facts with macro models will also discussed.


Specific requirements
Knowledge on basic macroeconomic models is required, including the neoclassic growth model and the overlapping generation model. Basic knowledge on OLS regression and instrumental variables will be useful for getting better understanding on some empirical facts. Some of the model details are difficult to understand for participants without the knowledge mentioned above, but the most part of the course will not be explaining model details but presenting empirical facts and key insights and making them well-understood by participants with different background.


Schedule
This five day course will cover five topics. In the first day, we will provide an overview of China’s development and present key facts. From day 2 to day 5, the following four topics will be discussed – one topic in one day: (1) growth, (2) state capitalism, (3) political institution, and (4) fertility, saving and pension. In each topic, there will be two lectures focusing on two papers, with some brief discussion on other related papers. The detailed schedule and content of lectures are listed below.

Day

Lecture

Paper

1

1

Storesletten and Zilibotti (2014) China’s Great Convergence and Beyond

 

2

Brandt and Zhu (2010) Accounting for China’s Growth

2

3

Song, Storesletten and Zilibotti (2011) Growing Like China

 

4

Song, Storesletten and Zilibotti (2014) Growing (with Capital Controls) Like China

3

5

Wang (2014) Will China Escape the Middle-income Trap? A Politico-economic Theory of Growth and State Capitalism

 

6

Li, Liu and Wang (2012) A Model of China’s State Capitalism

4

7

Xu (2011) The Fundamental Institutions of China’s Reforms and Development

 

8

Jia, Kudamatsu and Seim (2014) Political Selection in China : the Complementary Roles of Connections and Performance

5

9

Choukhmane, Coeurdacier and Jin (2014) The One-Child Policy and Household Savings

 

10

Song, Storesletten, Wang and Zilibotti (2015) Sharing High Growth Across Generations: Pensions and Demographic Transition in China


Reading list

  • Bai, C.-E., Hsieh, C.-t. and Qian, Y. (2006) The Return to Capital in China, Brookings Papers on Economic Activity, 37, 61–102.
  • Banerjee, A., Meng, X., Porzio, T. and Qian, N. (2014) Aggregate Fertility and Household Savings: A General Equilibrium Analysis Using Micro Data.
  • Brandt, L., Tombe, T. and Zhu, X. (2012) Factor Market Distortions Across Time, Space and Sectors in China, Review of Economic Dynamics, 16, 39–58.
  • Brandt, L. and Zhu, X. (2010) Accounting for China’s Growth.
  • Chen, J. and Lu, C. (2011) Democratization and the Middle Class in China: The Middle Class’s Attitudes toward Democracy, Political Research Quarterly, 64, 705–719.
  • Choukhmane, T., Coeurdacier, N. and Jin, K. (2014) The One-Child Policy and Household Savings.
  • Ge, S., Yang, D. T. and Suqing, G. (2014) Changes in China’SWage Structure, Journal of the European Economic Association, 12, 300–336.
  • Jia, R. (2014) Pollution for Promotion.
  • Jia, R., Kudamatsu, M. and Seim, D. (2014) Political Selection in China: the Complementary Roles of Connections and Performance.
  • Li, X., Liu, X. andWang, Y. (2012) A Model of China’s State Capitalism, pp. 1–65.
  • Song, Z., Storesletten, K., Wang, Y. and Zilibotti, F. (2015) Sharing High Growth Across Generations: Pensions and Demographic Transition in China, American Economic Journal: Macroeconomics.
  • Song, Z., Storesletten, K. and Zilibotti, F. (2011) Growing Like China, American Economic Review, 101, 196–233.
  • Song, Z., Storesletten, K. and Zilibotti, F. (2014) Growing (with Capital Controls) Like China, IMF Economic Review (forthcoming).
  • Storesletten, K. and Zilibotti, F. (2014) China’s Great Convergence and Beyond, vol. 6.
  • Wang, Y. (2014) Will China Escape the Middle-income Trap? A Politico-economic Theory of Growth and State Capitalism, pp. 1–44.
  • Wei, S.-j. and Zhang, X. (2014) The Competitive Saving Motive : Evidence from Rising Sex Ratios and Savings Rates in China, 119, 511–564.
  • Xu, C. (2011) The Fundamental Institutions of China’s Reforms and Development, Journal of Economic Literature, 49, 1076–1151.


The lecturers
Professor Kjetil Storesletten and Assistant Professor Yikai Wang, Department of Economics, University of Oslo.

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Tags: Economics, China, Development Economics, Macroeconomics, PhD, Summer School
Published Nov. 4, 2014 3:10 PM - Last modified Aug. 14, 2017 1:11 PM