What generates economic growth? Are civilizations converging toward common aims and values? This course combines theory, intuition, and history to explore the causes of the rise and decline of civilizations and to learn valuable lessons for the future.
After a thorough presentation of the growth process and the tools of optimal economic growth, students examine the fundamental problems of formerly planned economies (Russia and Eastern European countries) and the causes of financial crises in Eastern Asia and the present global crisis, compare the development of India and China in the last 30 years, and analyze the links between economic growth and civilization.
- The equation of motion of an economy
- Optimal growth theory
- Calculus of variations and optimal control approaches
- Deriving the Euler and Pontriaguine equations from economic reasoning
- An introduction to finance and current financial problems
- A proof of Smith's conjecture
- Links between economic growth and civilization
- Causes of the rise and decline of civilizations
- Lessons from 14th century historian Ibn Khaldun
- Lessons for the future
- Problem Sets- 20%
- Project- 40%
- Final Exam- 40%
Textbook: Olivier de La Grandville, Economic Growth, a Unified Approach. Cambridge University Press, Cambridge, 2009.