University of Toronto
Department of Economics
Economic Growth and Technological Change
ECO 360Y
Academic Term: Winter 2005/2006
Professor M. J. Hare
Larkin Building, Trinity College, Room 336
Office Hours: Monday: 1:15 to 3:00 and Tuesday: 1:15 to 2:00
READING LIST: TERM TWO
[Revised: January, 2006]
CODE
All readings in the Extracts are Compulsory Readings
$ Newly Added To The Reading List
E Reading Already Cited in Extracts
NOTES:
a. There is no text book for this course. Instead, an Extract Package has been prepared
for each term through Scholar House, 100 Harbord Street. The legally required [by the
Canadian Government] royalty fees for each page selected from a volume is 7.4 cents per
page. Thus, more than half the cost of the Extracts are the result of these copy right fees.
Articles and selections from many volumes are included in these Extracts.
b. Readings included within the Extracts are compulsory readings. Questions may be
developed from these readings for each test and for the final examination.
c. With respect to the Readings, students are expected to extract the principal theories,
themes and linkages [i.e., the analytical content] included within each article or chapter.
Students are not expected to memorize the many pieces of data which are also included in
these readings. In short, the requirement is to understand the main thread [and linkages] of
the article from the compulsory readings.
2
6.0 SOURCES OF MODERN ECONOMIC GROWTH
[November 30, 2005 and January 11 and 18, 2006]
6.1 Easterly, William, Solow’s Surprise: Investment Is Not the Key to Growth, Chapter 3, in
The Elusive Quest for Growth, 2002, pp. 47 to 69;
E6.2 Krugman, Paul, The Age of Diminished Expectations, Chapter 1. [Repeat of
Reading 1.7 which already exists in Extracts]
6.3 Weil, David N., Chapter 7, Measuring Productivity in Economic Growth, 2004,
pp. 182 to 201.
6.4
Denison. E.F. and Chung, W.K., “Economic Growth and its Sources”, pp. 95 to 105
middle and 125 top to 138 bottom; in Patrick, H. and Rosovsky, H., editors, Asia’s New
Giant;
6.5
Harris, Richard G., Determinants of Canadian Productivity Growth: Issues and
Prospects, Discussion Paper No. 8, CSLS-Industry Canada Conference, Canada in the
21st Century, September, 1999, pp. 1 to 19;
6.6 Abramovitz, Moses, Thinking About Growth, Chapter 4, Economic Growth in the United
States: a Review Article [of Denison’s Analysis], 1991, pp. 148 to 170 middle;
E***6.7 Lewis, William W., The Power of Productivity, Chapter One, The Global Economic
Landscape, 2004, pp. 1 to 20; [Reading 1.11]
$6.8 Madrick Jeff, Why Economies Grow: The Forces that Shape Prosperity and How to Get
Them Working Again, 2002, Chapter 3, The Importance of Economic Growth,
pp. 31 to 46.
3
7.0 THE ECONOMICS OF TECHNOLOGICAL CHANGE
[January 25 and February 1, 2006]
7.1 Mansfield, Edwin., Technology and Productivity in the United States, Chapter 8, pp.
563 to 596 middle in Feldstein, M., editor, The American Economy in
Transition.
7.2 Mansfield, E., Edwin, Contributions of New Technology to the Economy, Chapter 5
in Smith Bruce L .R., and Barfield Claude E., editors, Technology, R&D and the
Economy, pp.. 114 to 126 bottom.
7.3 Freeman, Christopher, The Economics of Industrial Innovation, Second Edition, Chapter 5,
Sources and Failure in Industrial Innovation, pp.107 to 130.
7.4 Freeman, Christopher, Chapter 2, The Economics of Technological Change in Trade,
Growth and Technical Change edited by D. Archibugi and J. Michie, 1998, pp. 16 to 36
bottom.
7.5 Porter, Michael E. and Stern, Scott, Innovation: Location Matters, Chapter 9 in
Innovation: Driving Product, Process and Market Change edited by Edward B.
Roberts, MIT Sloan Management Review, 2002, pp. 239 to 259 middle.
4
8.0 THE JAPANESE ECONOMIC GROWTH “MIRACLE” [February 8, 2006]
8.1 Ito, T., The Japanese Economy, 1992:
Chapter 3, Economic Growth, pp. 43 to 72;
Chapter 7, Industrial Structure and Policy, pp. 196 middle to 205 bottom;
Chapter 8, The Labor Market, pp. 209 to 216 top;
8.2 Sheard, Paul, Keiretsu. Competition and Market Forces in Graham, M., and Richardson J.
David, editors, Global Competition Policy, 1997, pp. 501 to 508; 514 to 528; 538 to
542 top;
$8.3
Okimoto, D. I.., Between MITI and the Market: Japanese Industrial Policy for High
Technology, 1990, Chapter Two, Industrial Policy Instruments for High Technology,
pp. 55 to 111.
9.0 THE AMERICAN AND JAPANESE ECONOMIC
INTERFACE [February 15 and March 1, 2006]
5
9.1 Bergsten C. Fred and Cline William. R.., The United States-Japan Economic Problem,
[Revised Edition, January 1987]: Chapter 2 , Macroeconomic Influences, pp.
21 to 52;
9.2 Bergsten C. Fred and Noland, M., Reconcilable Differences:, 1993:
Chapter 1, Introduction, pp. 1 to 12 middle;
Chapter 3, Structural Access Barriers, pp. 59 to 97;
9.3 Prestowitz, Clyde, Trading Places: How We Allowed Japan to Take the Lead, 1988
Chapter 1, The End of the American Century, pp. 3 to 25;
Chapter 2, Losing the Chips: The Semiconductor Industry, pp. 26 to 46 bottom;
Chapter 11, Waking Up, pp. 305 to 314 top.
9.4 Thurow, Lester, Head to Head, 1992,
Chapter1, The Bear in the Woods is Gone, pp. 11 to 25;
Chapter 2, A New Economic Game, pp. 39 middle to 55 middle.
Chapter 5: The United States of America: The Great Wall Is Down, pp. 153 to 201;
10.0 ECONOMIC SLOWDOWN: ISSUES AND ANALYSIS
[March 8 and 15, 2006]
10.1 Denison, E.F., and Chung, W.K., Economic Growth and Its Sources in Patrick, H., and
6
Rosovsky H., Asia’s New Giant, pp. 139 to 151.
10.2 Denison, E. F., Accounting for Slower Economic Growth: An Update, Chapter 1 in
International Comparisons of Productivity and Causes of the Slowdown
edited by J. W. Kendrick, pp. 1 to 6 top;
10.3 Van Duijn, J. J., The Long Wave in Economic Life, Part IV, pp. 195 to 208;
10.4 Maddison, Angus, Comparative Analysis of the Productivity Situation in the Advanced
Capitalist Countries, in Kendrick, John W., editor, International Comparisons
of Productivity And Causes of the Slowdown, 1984, pp. 59 to 81.
10.5 Baumol W. J., Blackman S. A. B. and Wolff E. N., editors, Productivity and American
Leadership: The Long View: Chapter 4, Long-Run Growth in U. S.
Productivity: Is There a Slowdown? pp. 65 to 82 top;
10.6 Krugman, Paul, Peddling Prosperity:
Introduction, Looking for Magicians, pp. 3 to 15 middle;
Chapter 10, The Strategic Traders, pp. 245 to 277 middle;
Epilogue, pp. 281 to 292;
$10.7 Madrick, Jeff, Why Economies Grow: The Forces That Shape Prosperity and How to
Get Them Working Again, 2002, Chapter 6, The Productivity Slowdown of the Late
Twentieth Century, pp. 87 to 114.
TEST TWO: SECTION 6 TO SECTION 10
Wednesday, March 29, 2006]
[Two Hours in Class Time: 25% of Final Grade]
11.0 THE CANADIAN PRODUCTIVITY ISSUE [March 22, 2006]
11.1 Law, Marc T., Productivity and Economic Performance: An Overview of the Issues,
pp. 17 to 23;
11.2 Sharpe, Andrew, The Stylized Facts of the Canada-U.S. Manufacturing Productivity
7
Gap, Centre for the Study of Living Standards [CSLS], in International Productivity
Monitor, Number Two, Spring 2001, pp. 3 to 10.
E11.3
Harris, Richard G., Determinants of Canadian Productivity Growth: Issues and
Prospets, CSLS-Industry Canada Conference on Canada in the 21st Century: A Time
for Vision. [Extracts: Reading 6.5]
11.4 Fortin, Pierre, The Canadian Standard of Living: Is There a Way Up?, The 1999
Benefactors Lecture, C. D. Howe Institute, 1999, pp. title page; 67 bottom to 88
middle.
E11.5 Lipsey, Richard G., Economic Growth, Technological Change and Canadian
Economic Policy, The 1996 Benefactors Lecture, C.D. Howe Institute, 1996, pp.4
middle to 6; 46 to 61 middle and 80 to 84 [Extracts: Reading 1.3].
11.6 Sharpe, Andrew, Raising Canadian Living Standards: A Framework for Analysis,
Centre for the Study of Living Standards, International Productivity Monitor,
Number 5, Fall, 2002, pp. 23 to 35 bottom;
$11.7 Institute for Competitiveness & Prosperity, Realizing Canada’s Prosperity Potential,
paper presented to the Annual Meeting, 2005 of the World Economic Forum, Davos,
Switzerland, January, 2005, Canada’s Prosperity Gap, pp. 7 to 15;
11.8
Rao, Someshwar, An Analysis of the Labour Productivity Growth Slowdown in
Canada since 2000, Centre for the Study of Living Standards, International
Productivity Monitor, Number 10, Spring 2005, pp. 3 to 23;
$11.9 Sharpe, Andrew, Recent Productivity Developments in Canada and the United States
Productivity Growth Deceleration versus Acceleration in International Productivity
Monitor , Number Eight, Spring 2004, pp. 16 to 26;
$11.10 Milway, James, Fixing Fiscal Federalism to Improve Canada’s Productivity
Performance in International Productivity Monitor, Number Eleven, Fall 2005, Centre
for the Study of Living Standards, pp. 14 to 20.
12.0 NEW DIMENSIONS TO THE GROWTH AND
PRODUCTIVITY GAMES [April 5 and 12, 2006]
12.1 Thurow, Lester C., The Future of Capitalism:
Chapter 1, New Game, New Rules, New Strategies, pp. 1 to 19;
Chapter 4, Plate Two; An Era of Man-made Brainpower Industries, pp. 65 to 79
8
middle;
Chapter15, Operating in a Period of Punctuated Equilibrium, pp. 310 to 327.
12.2 Krugman Paul, The Return of Depression Economics, Chapter 4, The Future That
Didn’t Work: Japan in the 1990's, pp. 60 to 82.
12.3
Posen, Adam S., Restoring Japan’s Economic Growth, Institute for International
Economics,, Chapter 1, Diagnosis: Macroeconomic Mistake, Not Structural
Stagnation, 1998, pp. 13 to 28.
12.4 Lewis, William W., The Power of Productivity, 2004, Chapter Two, Japan: A Dual
Economy, pp. 23 to 49.
12.5
Baumol, William J., The Free Market Innovation Machine: Analyzing the Growth
Miracle of Capitalism, Chapter 4, Oligopolistic Rivalry and Routine Innovation
Spending: Theory of the Engine of Unprecedented Capitalist Growth, 2002, pp. 43 to
54.
12.6 Lewis, William W., The Power of Productivity, 2004:
a. Chapter Eleven: New Approaches, pp. 285 to 311;
b. Chapter Twelve: So What?, pp. 312 to 319;
12.7 Lewis, William W., The Power of Productivity, 2004, Chapter Four, The United States:
Consumer is King, pp. 80 to 104.
12.8 Sharpe, Andrew, Ten Productivity Puzzles Facing Researchers in The International
Productivity Monitor, Fall, 2004 by the Centre for the Study of Living Standards,
pp. 15 to 24.
12.9
Thurow, Lester, Fortune Favors The Bold: What We Must Do To Build a New And
Lasting Global Prosperity, 2005;
a. Chapter 1, A Global Economic Tower of Babel, pp. 1 to 24;
b. Chapter 5, Real Dangers to the Global Tower, pp. 148 to 182;
c. Chapter 10, The Structure and Attitudes of Success, pp. 296 to 309.