Foundations of Economic Growth and Innovation
Curriculum
- 8 Sections
- 37 Lessons
- 10 Weeks
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- Introduction1
- A Primer on the Mathematical Foundations of Economic Growth Theory5
- Briefing Document: Core Paradigms and Policy Implications of Economic Growth Theory6
- Comprehensive Lecture Notes on the Economics of Growth4
- Policy Briefing: Fostering Sustainable Growth and Innovation4
- The Great Divergence: Technology, Institutions, and the Pathways to Prosperity5
- Understanding Economic Growth: The Core Theories Explained8
- 7.11. Introduction: Why Do Economists Study Growth?
- 7.22. The Foundational Theory: The Neoclassical (Solow-Swan) Model
- 7.33. Endogenous Growth: Bringing Technology Inside the Model
- 7.44. The First Wave of Endogenous Growth: The AK Model
- 7.55. The Second Wave: Innovation-Based Growth Models
- 7.66. The Schumpeterian Model: Growth Through “Creative Destruction”
- 7.77. Tying It All Together: A Comparison of Growth Theories
- 7.88. Conclusion: The Evolving Understanding of Growth
- Study Guide: Economic Growth Theory4
3. Endogenous Growth: Bringing Technology Inside the Model
In response to the limitations of the Neoclassical model, economists developed “endogenous growth theory.” The goal of these newer theories is to make technological progress an endogenous variable—that is, a variable that is determined by the economic decisions made by individuals and firms within the model.