The economics of growth

Abstract

This comprehensive introduction to economic growth presents the main facts and puzzles about growth, proposing simple methods and models needed to explain these facts. It acquaints readers with the most recent theoretical and empirical developments, and provides tools for analyzing policy design. The book covers the major growth paradigms, including the neoclassical model, the AK model, Romer’s product variety model, and the Schumpeterian model. It then delves into the dynamic process of growth and development, discussing topics such as club convergence, directed technical change, and the transition from Malthusian stagnation to sustained growth. Finally, the book focuses on growth policies, analyzing the effects of market liberalization, education policy, trade liberalization, and environmental constraints, and providing a methodology for growth policy design. The text is accessible to students with a background in elementary calculus and probability theory and includes literature reviews and problem sets.