1 Introduction to Macroeconomics
2 Measuring the Macroeconomy
3 An Overview of Long-Run Economic Growth
4 A Model of Production
5 The Solow Growth Model
6 Growth and Ideas
7 The Labor Market, Wages, and Unemployment
8 Inflation
9 An Overview of the Short-Run Model
10 The IS Curve
11 Monetary Policy and the Phillips Curve
12 Stabilization Policy and the AS/AD Framework
13 The Global Financial Crisis: Overview
14 The Global Financial Crisis and the Short-Run Model
15 The Government and the Macroeconomy
16 International Trade
17 Exchange Rates and International Finance
18 Parting Thoughts




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Chapter 6: Growth and Ideas

Chapter Outline

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6.1 Introduction

6.2 The Economics of Ideas

  • Ideas 
  • Nonrivalry 
  • Increasing Returns 
  • Problems with Pure Competition

6.3 The Romer Model

  • Why Is There Growth in the Romer Model? 
  • Balanced Growth 
  • Experiments in the Romer Model 
  • Growth Effects versus Level Effects 
  • Recapping Romer 

6.4 Combining Solow and Romer: Overview 

6.5 Growth Accounting 

6.6 Concluding Our Study of Long-Run Growth 

6.7 A Postscript on Solow and Romer 

6.8 Additional Resources

  • Summary 
  • Key Concepts 
  • Review Questions 
  • Exercises 
  • Worked Exercises 

6.9 APPENDIX: Combining Solow and Romer (Algebraically)

  • Setting up the Combined Model
  • Solving the Combined Model
  • Long-Run Growth
  • Output per Person
  • Transition Dynamics
  • More Exercises
« Return to Chapter 06 Study Plan