Growth

Lecture handout: Growth*

⭐ Required readings:

Watch: Growth is like an iPhone


Here is an example of Prague’s enduring beauty. But rather than look at this image and think about preservation of the status quo, I look at it and think of the amazing growth that transformed it from a hamlet to the city shown in 1910. Indeed, any historic and enduring beauty is testimony to previous growth and ambition.

Activity: Growth activity
Activity: Free Markets in Chile
Activity: Economic Freedom Parlour Game

You can read my essay that summarises the key points from this session here:

Here is my video using the iPhone analogy:

I go deeper with this framework with my Country Competitiveness Dashboard.

Recommended podcasts

Recommended article

Recommended books

  • Koyoma, M., and Rubin, J., 2022, How the world became rich: The historical origins of economic growth, Wiley – Mark and Jared survey the main explanations for economic growth, including geography, institutions, culture and exploitation, with a focus on why the Industrial Revolution occurred in England and how it then spread to other countries across the world.
  • De Long, B., 2022, Slouching towards utopia, Basic books – this is a large tome and covers a lot of ground, but is empirical, readable, and an important work.

 Recommended videos:

The foundational growth model is the Solow Model. Marginal Revolution have a series of excellent videos, starting here:

Learning Objectives: Understand the foundations of economic growth. See how economic growth theories inform development economics. 

Cutting edge theory: This session defines cutting edge growth 

Focus on diversity: One of the most widely respected economic historians of the factors that led to industrialisation is Deidre McCloskey

Spotlight on sustainability: This session defines the sustainable growth rate as the balanced path between capital accumulation and capital consumption.