3 credits
Fall 2025 Lecture Upper Division
Part one: we focus on this fact: the richest countries in the world have incomes nearly 200 times greater than the poorest, with profound consequences for the lives (and deaths) of their citizens. Why nations are poor and how they can become rich is one of the most important questions in Economics. We will look at the role of investment, schooling, population growth and technology. Part two: we explore how globalization affects productivity and innovation. This includes how international trade and domestic policies affect allocative efficiency, accelerate structural change, and discipline competitive behaviors by domestic firms. We explore how firms grow on global markets, how technology is embodied in traded inputs, and how international markets for ideas and the possibility of imitation can lead to explosive growth. Part three: we explore a rapidly growing literature on the economics of innovation. We'll wrestle with the questions of: where new ideas come from, and whether it is becoming more difficult to innovate; how cities become hotbeds of innovation and how this will be affected by remote work; and how innovation can be shaped by choices of firms and by government policies.
Learning Outcomes1Analyze income levels and growth rates across countries using economic models to understand and assess the underlying factors driving disparities in economic development, including investment, population growth, schooling, and technology.
2Assess these factors quantitatively and make cross-country comparisons to build capabilities for engaging in economic reasoning through data.
3Use economic models and research evidence to evaluate the causal drivers of, and impact of policy decisions on, innovation at the level of individuals, institutions, and places.
Prerequisites
made by Purdue students.