Institution(s): School of Economics and Finance

Date: Jun 05, 2002 (Wednesday)

Time: 05:30 pm - 06:30 pm

Venue: Rayson Huang Theatre, The University of Hong Kong

Fee: Free of charge

Inquiries: Ms. Mabel Woo (852) 2859 2192 or email mabel@econ.hku.hk

Abstract:

As one of the world's leading applied theorists, Prof. Philippe Aghion is the recipient of the prestigious 2001 Yrjo Jahnsson Award in Economics. His research spans a broad array of fields including corporate finance, industrial organization, political economy and macroeconomics. In two path-breaking contributions, he and his co-author Patrick Bolton laid out the principles for the allocation of control rights in financial arrangements, and unveiled the mechanics of long-term contracting as a barrier to entry. His current research agenda is to provide a unified framework to study the impact of economic institutions on growth, and the interplay between technical change and institutional change. Much of his past work on growth is synthesized in his joint book on Endogenous Growth Theory (MIT Press, 1998) with Peter Howitt.

This lecture confronts Schumpeterian Growth Theory, in which growth is driven by entrepreneurial innovations each of which improves on previous technologies, with alternative growth theories based on capital accumulation. In particular, it argues that the Schumpeterian approach does a better job at explaining observed cross-country convergence patterns, and at analyzing the interplay between long-run growth and important economic aspects such as market structure and the nature of competition policy, macroeconomic volatility, the management of natural resources, the dynamics of wage inequality, and the design of organizations and firms.