Inclusive Growth and Sustainability

COURSE OBJECTIVE
This course aims at providing a solid understanding of economic growth and its links to sustainability and changes in well-being.

After successfully completing this course you will:
- have a deeper understanding of economic growth theory (Academic and Research Skills);
- have an understanding of drivers of growth, both theoretically and empirically (Academic and Research Skills);
- have insight into the relationship between growth, sustainability and changes in well-being (Bridging Theory and Practice - Knowledge);
- have insight into the long-term balancing of growth in income, environmental sustainability and changes in other aspects of society (Bridging Theory and Practice - Knowledge);
- be able to describe and interpret patterns of growth (Bridging Theory and Practice - Application);
- be able to apply growth theory to practical policy issues (Bridging Theory and Practice - Application);
- be able to judge the prospects of the concept of green growth (Broadening your Horizon);
- be able to judge the prospects of the concept of inclusive growth(Broadening your Horizon).

COURSE CONTENT
Growth in knowledge has been the main driver of increases in income over the past 300 years, but has also changed the organization of society and has put pressure on natural resources. Major questions are why countries grow, why growth rates differ between countries and over time and how economic growth can be reconciled with societal well-being and environmental sustainability. These questions will be analysed by studying the main existing theoretical models as well as by relating empirical data to theory. The course starts with an overview of key stylized facts relating to growth, sustainability and well-being. Next, the main theoretical models will be introduced, including the Solow model, endogenous growth models and more recent sectoral models of knowledge and innovation. There will be a special focus on the interrelationship between income growth, environmental sustainability and social well-being. Growth models will be studied that incorporate natural capital, providing insights into the possibilities of long-term balancing of economic growth and environmental sustainability. Finally the importance of directed technological change and the implications for policy will be addressed. Throughout the course theoretical models will be confronted with empirical data.

TEACHING METHODS
Lectures.
Tutortials.

TYPE OF ASSESSMENT
Weekly assignments,
Written exam

RECOMMENDED BACKGROUND KNOWLEDGE
Quantitative Research Methods II, Macroeconomics II, Microeconomics II, Regional and Urban Economics.