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Introduction to Modern Economic Growth 3.6 3.7 3.8 3.9 Estimating Productivity Differences Taking Stock References and Literature Exercises 141 148 150 151 Chapter Fundamental Determinants of Differences in Economic Performance 4.1 Proximate Versus Fundamental Causes 4.2 Economies of Scale, Population, Technology and World Growth 4.3 The Four Fundamental Causes 4.4 The Effect of Institutions on Economic Growth 4.5 What Types of Institutions? 4.6 Disease and Development 4.7 Political Economy of Institutions: First Thoughts 4.8 Taking Stock 4.9 References and Literature 4.10 Exercises 155 155 160 163 178 199 202 206 207 208 211 Part 213 Towards Neoclassical Growth Chapter Foundations of Neoclassical Growth 5.1 Preliminaries 5.2 The Representative Household 5.3 Infinite Planning Horizon 5.4 The Representative Firm 5.5 Problem Formulation 5.6 Welfare Theorems 5.7 Sequential Trading 5.8 Optimal Growth in Discrete Time 5.9 Optimal Growth in Continuous Time 5.10 Taking Stock 5.11 References and Literature 5.12 Exercises 215 215 218 226 229 232 233 241 245 246 247 248 250 Chapter Dynamic Programming and Optimal Growth 6.1 Brief Review of Dynamic Programming 6.2 Dynamic Programming Theorems 6.3 The Contraction Mapping Theorem and Applications* 6.4 Proofs of the Main Dynamic Programming Theorems* 6.5 Fundamentals of Dynamic Programming 6.6 Optimal Growth in Discrete Time 6.7 Competitive Equilibrium Growth 6.8 Another Application of Dynamic Programming: Search for Ideas iv 255 256 260 266 272 280 291 297 299

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