|Type:||lecture and exercise|
|Date and place:|| |
lecture wednesday, 12-14 h, room M127
exercise wednesday, 14-16 h, room M127
|Type of examination:||written exam|
The course targets Bachelor students in business administration, mathematics, engineering and students of other courses that want to work on a specialization of economic theory in the course of their studies.
The course covers long-term economic growth and international trade as well as their linkages within economic globalization. Important questions are: Why do countries differ so much in per capita income and why is there only limited income equalization? Will growth slow down given the increase in world population and the finite nature of natural resources? What are the welfare effects of trade and trade policies? Do all countries and actors benefit equally from free trade? What is the importance of multinational firms for global trade? How does free trade affect growth and the convergence of growth rates across countries?
The first part of the course uses a simple dynamic model framework to shed light on the role of investment in real and human capital, population growth, and technological change on growth, and to analyze the effect of long-term policies. Extensions of the model address the economic incentives for private research and development and the constraints on growth imposed by scarce natural resources. The second part of the course analyzes classical and modern models of trade and discusses the interaction between trade, globalization, and growth.