Economic Growth and Development

  1. Classical and Early Growth Models
    1. Adam Smith and the Division of Labor
      1. Specialization and Productivity
        1. Pin Factory Example
          1. Skill Development
            1. Time Savings
            2. Market Size and Growth
              1. Extent of the Market
                1. Trade and Specialization
                2. The Invisible Hand
                  1. Market Coordination
                    1. Self-Interest and Social Benefit
                  2. Thomas Malthus and Population Dynamics
                    1. Population Growth and Food Supply
                      1. Geometric vs. Arithmetic Growth
                        1. Resource Constraints
                        2. Malthusian Equilibrium
                          1. Subsistence Wages
                            1. Population Checks
                            2. Critiques of Malthusian Theory
                              1. Technological Progress
                                1. Demographic Transition
                                  1. Modern Evidence
                                2. David Ricardo and Diminishing Returns
                                  1. Law of Diminishing Returns
                                    1. Intensive vs. Extensive Margin
                                      1. Agricultural Production
                                      2. Comparative Advantage
                                        1. Trade Theory
                                          1. Specialization Benefits
                                          2. Land Scarcity and Rent
                                            1. Differential Rent Theory
                                              1. Economic Rent Concept
                                            2. The Harrod-Domar Model
                                              1. The Role of Savings and Investment
                                                1. Savings-Investment Identity
                                                  1. Capital Formation
                                                  2. The Capital-Output Ratio
                                                    1. Fixed Proportions
                                                      1. Incremental Capital-Output Ratio (ICOR)
                                                      2. Warranted Growth Rate
                                                        1. Equilibrium Growth
                                                          1. Investment Requirements
                                                          2. Natural Growth Rate
                                                            1. Labor Force Growth
                                                              1. Population Dynamics
                                                              2. Instability and the "Knife-Edge" Problem
                                                                1. Divergent Growth Paths
                                                                  1. Lack of Self-Correction
                                                                  2. Policy Implications of the Model
                                                                    1. Savings Mobilization
                                                                      1. Investment Planning
                                                                        1. Foreign Aid Rationale
                                                                        2. Limitations and Criticisms
                                                                          1. Fixed Coefficients Assumption
                                                                            1. Neglect of Prices
                                                                              1. Technological Progress

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                                                                          2. Measuring Development and Well-being

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                                                                          4. The Neoclassical Growth Model: Solow-Swan