ECON-4213 Long-term Advanced Macroeconomics

This course addresses long-term macroeconomics emphasized on micro-based models of inter-temporal choice. The course intends to analyze the main available empirical evidence related to the theories discussed. The course is divided into two sections. The first section deals with the consumption theories, especially the permanent income theory and the basic theory of inter-temporal choices, the classical theory of capital accumulation and the investment theory that integrates fixed costs and intermittent investment. Besides, the class will study the labor market, creation and destruction of work and the main sources of economic friction in the market adjustment. The first section ends with the study of efficiency in the allocation of resources and the growth of added productivity and also focuses on topics as the breakdown of productivity growth, factor adjustment and market choices. The second section of the course addresses the most recent and important contributions to the economic growth theory. This section is also concerned with the neoclassical model of growth (with and without dynamic optimization), the first endogenous growth models based on constant yields of the accumulable factor, apart from endogenous growth models based on the quality increase of intermediate goods, human capital formation, and those based upon technological innovations. The last section of the course presents some recent developments in the long-term economic growth theory focused on topics as income distribution, human capital formation, demographic transition and industrial revolution.