ECO362H5 • Economic Growth: Theory and Evidence

Differences in income per capita levels and growth rates across countries are large. Understanding the causes behind these differences is a fundamental question in economics. The main objective of this course is to apply economic theory to understand and interpret empirical observations on economic development and growth. By the end of this course students will have a basic knowledge of the main facts characterizing economic development and growth over time and across countries, as well as the ability of theoretical models to account for these facts. The topics that will be covered in the course include the role of physical and human capital accumulation in growth and income differences, the reallocation of factors across sectors (structural transformation) and aggregate productivity, the importance of the misallocation of resources across heterogeneous firms in aggregate productivity. Key empirical applications include the growth performance of industrialized countries since World War II and the productivity slowdown observed in recent decades, the stagnation of living standards in many developing countries, and the role of automation and artificial intelligence in growth and development.

(ECO200Y5 or ECO204Y5 or ECO206Y5) and (ECO202Y5 or ECO208Y5 or ECO209Y5) and (ECO220Y5 or ECO227Y5 or (1.0 credit from STA256H5, STA258H5, STA260H5)) and (MAT133Y5 or MAT134Y5 or (MAT132H5 and MAT134H5) or MAT135Y5 or (MAT135H5 and MAT136H5) or MAT137Y5 or (MAT137H5 and MAT139H5))
Social Science
In Class