Oslo Summer School in Comparative Social Science Studies 1999
Main Discipline: Economics
Lecturer: Professor Philippe Aghion
Institution: University College London, UK
Dates: 9th - 13th August 1999
This course presents the new growth theories, especially the Schumpeterian approach, emphasizing the relationship between growth and economic institutions (labor markets, market competitions, organisation of firms, social inequality, and skills). The course studies the institutional underpinnings of the growth process,with obvious policy implications: how should we (re-)organise markets and firms in Europe so as to favor productivity growth through the production and diffusion of new innovations? Various policy measures that influence the process of structural change will be discussed: competition policy, anti-trust legislation, cross-country industry regulations, labor market policies, education and training schemes, as well as R&D subsidies and patent policy across the EU.
The impact of labor mobility and European integration through trade liberalisation will be dealt with, as will financial development, especially the freeing of capital movements. The course will also discuss European options in light of recent social and economic problems: How can we prevent that growth and technical progress result into excessive unemployement and wage inequality, or into financial turmoils such as those recently experienced in Asia?
- Aghion, Phillippe. and Peter Howitt, Endogenous Growth Theory, Cambridge, Mass.: MIT Press 1998, Chs. 1, 2, 3, 4, 6, 7, 8, 9, 10, including solutions (330 pp + solutions 103 pp).
- Aghion, Phillippe & P. Howitt, "A Model of Growth through Creative Destruction", Econometrica, Vol. 60, Nr. 2, Mar 1992, pp. 323-351 (28 pp)
- Aghion, Philippe & Bolton, Patrick, "A Theory of Trickle-Down Growth and Development", Review of Economic-Studies, 64(2), April 1997, pages 151-72 (21 pp).
- Grossman, Gene M. & E. Helpman, "Quality Ladders in the Theory of Growth", Review of Economic Studies, Vol. 58, Nr. 1, Jan 1991, side 43-61 (18 pp).
- Jones, Charles I. "R&D-Based Models of Economic Growth", Journal of Political Economy, Vol. 103, Nr. 4, Aug 1995, side 759-784 (25 pp)
- Lucas, Robert E., Jr. "On the Mechanics of Economic Development", Journal of Monetary Economics; 22(1), July 1988, pages 3-42. (39 pp)
- Lucas, Robert E., Jr. "Making a Miracle", Econometrica, Vol. 61, Nr. 2, Mar 1993, side 251-272 (21 pp)
- Romer, Paul M. "Increasing Returns and Long-Run Growth", Journal of Political Economy, 94(5), October 1986, pages 1002-37 (35 pp).
- Romer, Paul M., "Endogenous Technical Change", Journal of Political Economy, Vol. 98, Nr. 5, Okt 1990, pp. 71-102. (31 pp)
- Young, Alwyn, "Learning-by-Doing and the Dynamic Effects of International Trade", Quarterly Journal of Economics, Vol. 106, Nr. 2, Mai 1991, side 369-405 (36 pp).
- Young, Alwyn "A Tale of Two Cities" , pp. 13-54 i Olivier J. Blanchard & Stanley Fischer, eds., NBER macroeconomics annual, 1992. Cambridge and London: MIT Press, 1992, pages 13-54. (41 pp)
Outline of Lectures
- Lecture 1: Solow and the AK approach to endogenous growth. Readings: Aghion/Howitt 1998, Ch. 1, Romer 1986, Romer 1990.
- Lecture 2: The Schumpeterian Approach. Readings: Aghion/Howitt 1998, Ch. 2, Aghion/Howitt 1992.
- Lecture 3: Innovations and Capital Accumulation. Readings: Aghion/Howitt 1998, Ch. 3, Jones 1995.
- Lecture 4: Market Structure. Readings: Aghion/Howitt 1998, Ch. 7
- Lecture 5: Learning by Doing. Readings: Aghion/Howitt 1998, Ch. 6, Young 1991, Young 1992, Lucas 1993.
- Lecture 6: Growth and Cycles. Readings: Aghion/Howitt 1998, Ch. 8
- Lecture 7: Growth and Unemployment. Readings: Aghion/Howitt 1998, Ch. 4
- Lecture 8: From inequality to growth. Readings: Aghion/Howitt 1998, Ch. 9, Aghion/Bolton 1997.
- Lecture 9: From growth to inequality. Readings: Aghion/Howitt 1998, Ch. 9
- Lecture 10: Education. Readings: Aghion/Howitt 1998, Ch. 10, Lucas 1988.
Philippe Aghion is professor of economics at University College, London, England. His recent book with P. Howitt, Endogenous Growth Theory, Cambridge, Mass.: MIT Press (1998) is a major contribution to growth theory. Professor Aghion is a fellow of the Econometric Society, he is associate editor of Econometrica and editor of Economics of Transition. Among his other specialities are microeconomic theory, organisation theory, the economics of bankruptcy reform, the economics of innovation and the economics of transition in Eastern Europe.