Intro
Preface to the Second Edition
Preface to the First Edition
Contents
Abbreviations
1: Growth and International Trade: Introduction and Stylized Facts
1.1 Introduction and Motivation
1.2 Definition of Growth Magnitudes
1.2.1 Growth Rates of Products and Quotients
1.3 Kaldorś ``Stylized Facts ́́
1.4 Kuznets ́Facts
1.5 Internationalization Facts
1.5.1 World Trade Is Growing Faster Than World Output
1.5.2 Export and Import Ratios Increase Over Time
1.5.3 Two-Thirds of Foreign Trade Takes Place Between Developed Countries

1.5.4 Neighboring Countries Trade More with Each Other Than Countries That Are Further Apart
1.6 Globalization Facts
1.6.1 Foreign Direct Investment and Financial Investment
1.6.2 Asia Since the 1970s: ``The ́́Dynamic Export Region
1.7 Summary and Conclusions
1.8 Exercises
References
Part I: Growth
2: Modeling the Growth of the World Economy: The Basic Overlapping Generations Model
2.1 Introduction and Motivation
2.2 The Set-Up of the Model Economy
2.3 The Macroeconomic Production Function and Its Per Capita Version

2.4 Structure of the Intertemporal Equilibrium
2.4.1 Intertemporal Utility Maximization of Younger Households
2.4.2 Old Households
2.4.3 A-Temporal Profit Maximization of Producers
2.4.4 Market Equilibrium in All Periods
2.5 The Fundamental Equation of Motion of the Intertemporal Equilibrium
2.6 Maximal Consumption and the ``Golden Rule ́́of Capital Accumulation
2.7 Summary and Conclusion
2.8 Exercises
Appendix
1. Constrained Optimization
2. Walras ́Law
References
3: Steady State, Factor Income, and Technological Progress
3.1 Introduction and Motivation

3.2 The GDP Growth Rate in Intertemporal Equilibrium and in Steady State
Definition 3.1
3.3 Existence and Stability of the Long-Run Growth Equilibrium
3.4 Efficiency of the Steady State
3.5 Comparative Dynamics in the Basic OLG Model
3.5.1 Increase in the Time Discount Factor
3.5.2 Reduction of the Population Growth Rate
3.5.3 Increase in the Rate of Technological Progress
3.6 Real Wage, Real Interest Rate, and Income Shares
3.6.1 Income Distribution along the Equilibrium Growth Path
3.7 Technological Progress in Neoclassical Growth Theory

3.7.1 Hicks-Neutral Technological Progress
3.7.2 Harrod-Neutral Technological Progress
3.7.3 Solow-Neutral Technological Progress
3.7.4 Resumé
3.8 Growth Accounting
3.9 Summary and Conclusion
3.10 Exercises
References
4: Economic Growth and Public Debt in the World Economy
4.1 Introduction and Motivation
4.2 European Debt Statistics
4.3 First-Order Conditions and Market Clearing
4.3.1 Market Equilibrium in All Periods
4.4 Intertemporal Equilibrium Dynamics
4.5 Existence and Stability of Steady States
4.5.1 Existence of a Long-Term Growth Equilibrium