Oslo Summer School in Comparative Social Science Studies 1999

Endogenous Growth

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?

Required readings

Outline of Lectures

The lecturer
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.