Political Economy 2

Numbering Code U-ECON00 20106 LJ43 Year/Term 2021 ・ First semester
Number of Credits 2 Course Type Lecture
Target Year From 2nd to 4th year students Target Student
Language Japanese Day/Period Wed.1
Instructor name SASAKI HIROAKI (Graduate School of Economics Professor)
Outline and Purpose of the Course Economic growth and business cycles are major events in the economy and society. How does economic theory explain economic growth and business cycles? The purpose of this lecture is to explain the economic growth theory and the business cycle theory in various schools, both neoclassical and non-neoclassical.
Course Goals The objective of this course is for students to understand the characteristics and differences of each economic theory, think for themselves about how much the economic theories can explain the real economic society, and consider the real economic society from the economic theoretical perspective.
Schedule and Contents The following topics will be covered over one to two weeks each.

1. Guidance: Overall overview
2. Neoclassical Growth Model: The Solow Model, Stable Convergence to Steady State
3. Endogenous Growth Model: The Romer Model, The Relationship between R&D and Economic Growth
4. Harrod Model: The Process of Dynamic Disequilibrium, Warranted Growth Rate, Natural Growth Rate
5. Kaldor's Business Cycle Model: Nonlinear Macrodynamics, Perpetual Business Cycle
6. Goodwin Model: Cyclical Growth, Interclass Conflicts, Minimum Wage Policy
7. Kaleckian Model: The Paradox of Thrift, Wage-Led Growth, Profit-Led Growth
8. Baumol Model: Two-Sector Model, Unbalanced Growth, Service Economy
9. Pasinetti Model: Multi-Sectorl Model, Difficulty in Maintaining Full Employment
10. Thirlwall Model: Economic Growth in an Open Economy, Balance of Payments Constraint
Evaluation Methods and Policy Results of the final exam are used for evaluation.
The final exam is based on the practice problems presented during lectures.
Course Requirements Basic knowledge of Microeconomics, Macroeconomics, Mathematics for Economics is necessary.
Study outside of Class (preparation and review) Students should read the lecture notes in advance and grasp the contents. After the class, students should review and solve the practice questions.
Textbooks Textbooks/References Not used. Lecture notes will be uploaded on the given webpage, which the students should obtain in advance before attending the lecture.
References, etc. Introduced in Class
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