Growth, Technical Change and Institutions (Fabrizio Zilibotti's part).

Lecturer: Prof. Fabrizio Zilibotti.

Stockholm University, PhD in Economics, March-April 2012.

This part of the course consists of two times three-hour plus two times two-hour lectures covering research topics in the area of innovation, nancial development and growth. The meeting will be held on

Monday 26 March (13:00-16:00, room TBA), Thursday 26 April (10:00-12:00, room TBA), Thursday 26 April (14:00-16:00, room TBA), Friday 27 April (9:00-12:00, room TBA)

The bibliography contains both articles that will be presented in detail and background material. Starred article will be given special attention. I will make use of the following books/article:

* Gancia G. and F. Zilibotti: "Horizontal Innovation in the Theory of Growth and Development." Handbook of Economic Growth Volume 1A. Edited by and Steve Durlauf, 112-170, 2005 (GZ1). * Gancia G. and F. Zilibotti: "Technological Change and the Wealth of Nations." Annual Reviews of Economics 1: 93-120 (GZ2). * Acemoglu D.: Introduction to Modern Economic Growth Princeton Uni- versity Press, Princeton NJ, 2009 (DA). * Aghion P. and P. Howitt The Economics of Growth MIT Press, Cambridge MA, 2009 (AH).

1 LECTURE 1

Endogenous technical change. Directed Technical Change (DTC).

* DA Chapters 12, 13 and 15. * GZ1 pp. 112-140. Rivera Batiz L. and Romer P.: \Economic Integration and Endogenous  Growth" Quarterly Journal of Economics, 106, 531-555 (1999). Romer, P. : \Endogenous Technical Change", Journal of Political Econ-  omy 98, S71-S102 (1990). Acemoglu D.: \Directed Technical Change", Review of Economic Studies,  69, 781-810 (2002).

2 LECTURE 2

Technology Adoption and Cross-country Productivity Di erences.

* DA Chapter 18 * GZ2 pp.93-112. * Gancia G., A. M•uller and F. Zilibotti: "Structural Development Account- ing". Forthcoming in the Proceedings of the 10th World Congress of the (ES), Shanghai, 2010. Dowloadable at http://www.econ.uzh.ch/faculty/zilibotti/publications/GMZ 2010 07 01 rst draft nal.pdf Acemoglu D. and F. Zilibotti: \Productivity Di erences." Quarterly Jour-  nal of Economics, 115, 563-606 (2001). Acemoglu D. G. Gancia, and F. Zilibotti: "Competing Engines of Growth:  Innovation and Standardization". Forthcoming in the Journal of Eco- nomic Theory. Dowloadable at http://www.econ.uzh.ch/faculty/zilibotti/publications/IvS31Aug2010 nal.pdf Basu S. and Weil D.: \Appropriate Technology and Growth" Quarterly  Journal of Economics, 113, 1025-1054 (1999). Caselli F. \Accounting for Income Di erences across Countries," in Hand-  book of Economic Growth (P.Aghion and S.Durlauf eds.). North Holland (2005).

3 LECTURE 3

Trade, Capital Flows, Credit Market Imperfections and Growth.

* DA Chapter 19 * Storesletten K., Z. Song and F. Zilibotti: \Growing like China" American Economic Review, 101, 202-241 (2011). Caballero, R., E. Farhi, and P.O. Gourinchas. \An Equilibrium Model of  `Global Imbalances' and Low Interest Rates." American Economic Review, 98, 358{93 (2008). Gourinchas P.O. and O. Jeanne. \Capital Flows to Developing Countries:  The Allocation Puzzle." Mimeo, 2009. http://socrates.berkeley.edu/~pog/academic/allocation june09.pdf. Lucas, R. "Why Doesn't Capital Flow from Rich to Poor Countries?".  American Economic Review, 80, 92{96 (1990). Matsuyama, K., \Credit Market Imperfections and Patterns of Interna-  tional Trade and Capital Flows", Journal of the European Economic As- sociation 3(2{3), 714{23 (2005). Mendoza, E., V. Quadrini and J.V. Ros-Rull, \Financial Integration, Fi-  nancial Development and Global Imbalances", Journal of Political Econ- omy 117, 371{416 (2009). Ventura, J. "Growth and Interdependence". Quarterly Journal of Eco-  nomics 112, 57-84 (1997).

4 LECTURE 4

Financial Development, Credit Market Imperfections and Growth.

* DA Chapter 17 * GZ1 pp. 150-57. * Acemoglu, Daron and Fabrizio Zilibotti \Was Prometheus Unbound by Chance? Risk Diversi cation and Growth." Journal of , 105, 709-51 (1997). Cetorelli, Nicola \Could Prometheus Be Bound Again? A Contribution  to the Convergence Controversy", Journal of Economic Dynamics and Control 27, 29-50 (2002). Imbs, Jean and Romain Wacziarg \Stages of Diversi cation" American  Economic Review, 93, 63-86 (2003). Koren, Miklos and \Volatility and Development" Quar-  terly Journal of Economics, 122, 243-287 (2007).

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