Course 2026-2027 a.y.

21110 - INNOVATION, INEQUALITY AND GROWTH

Department of Economics


Course taught in English
Go to class group/s: 31
ACME (6 credits - I sem. - OP  |  SECS-P/01) - AFM (6 credits - I sem. - OP  |  SECS-P/01) - AI (6 credits - I sem. - OP  |  SECS-P/01) - CLMG (6 credits - I sem. - OP  |  SECS-P/01) - DSBA (6 credits - I sem. - OP  |  SECS-P/01) - EMIT (6 credits - I sem. - OP  |  SECS-P/01) - ESS (6 credits - I sem. - OP  |  ECON-01/A  |  SECS-P/01) - FIN (6 credits - I sem. - OP  |  SECS-P/01) - GIO (6 credits - I sem. - OP  |  SECS-P/01) - IM (6 credits - I sem. - OP  |  SECS-P/01) - MM (6 credits - I sem. - OP  |  SECS-P/01) - PPA (6 credits - I sem. - OP  |  SECS-P/01)
Course Director:
NICOLA PAVONI

Classes: 31 (I sem.)
Instructors:
Class 31: NICOLA PAVONI


Suggested background knowledge

The course builds on knowledge of intermediate Macroeconomics and Microeconomics at undergraduate level and basic calculus. Knowledge of Advanced Macroeconomics is encouraged but not required.

Mission & Content Summary

MISSION

This course will explore the drivers of economic growth and inequality and will analyze the facts on long-run macroeconomic trends in income levels and inequality. The course will develop foundational concepts such as macroeconomic models of growth and the role of innovation, models of allocation of talent and productive factors across firms. The course will discuss applications such as the impact of modern technologies on the environment and the labor markets, the role of automation and AI, and economic transition, offering a comprehensive understanding of how policy can foster inclusive economic growth.

CONTENT SUMMARY

We will explore questions such as:

What drives improvements in income levels and living standards over time?

Why are some countries richer than others? What are the main drivers of income and wealth inequality across households?

The first part of the course will focus on innovation as a driver of sustained long-run growth and analyze which policies can foster technological progress and economic growth. The Second part of the course will focus on understanding both across country and within country inequality, the forces generating it, and the extent to which policy intervention can affect it.

 

Topics:

- Living Standards and Global Inequality: A Historical Perspective

- Innovation and Endogenous Growth: From the Solow model to Aghion and Howitt

- Growth and Development Accounting 

- Within and Cross Country Inequality
- Sectoral Composition and Structural Transformation (L6-L7)
- Firms Heterogeneity and Factor Misallocation: Lucas' Span and Control Model

- AI, Growth and Inequality
- Global Warming and Inequality

- The evolution and determinants of Labor Shares 
- Poverty, Social Mobility and the Gender Gap
- Labor and Wealth Taxation: Taxation of AI and Robots


Intended Learning Outcomes (ILO)

KNOWLEDGE AND UNDERSTANDING

At the end of the course student will be able to...

The style of the course combines empirical documentation of the facts and a synthesis of the mechanisms generating them via analytical models. At the end of the course, the student will have a broad view of the drivers of economics growth, innovation and inequality.

APPLYING KNOWLEDGE AND UNDERSTANDING

At the end of the course student will be able to...

The student will acquire basic macroeconomic tools that allow a `scientific' approach to these themes integrating data with economic modeling, allowing the student to discuss coherent policy implications.  


Teaching methods

  • Lectures
  • Practical Exercises
  • Individual works / Assignments
  • Collaborative Works / Assignments
  • Interaction/Gamification

DETAILS

The course will be based on both lectures and group interactions.


Assessment methods

  Continuous assessment Partial exams General exam
  • Written individual exam (traditional/online)
   x x
  • Individual Works/ Assignment (report, exercise, presentation, project work etc.)
 x    
  • Collaborative Works / Assignment (report, exercise, presentation, project work etc.)
 x    
  • Active class participation (virtual, attendance)
 x    

ATTENDING AND NOT ATTENDING STUDENTS

The assesment will be based on both exams, take home, home assignmemnts and presentations.


Teaching materials


ATTENDING AND NOT ATTENDING STUDENTS

- Lecture notes

- Acemoglu Daron: Introduction to Modern Economic Growth.
- Barro and Sala-i-Martin: Economic Growth. 

- Published Research Articles (to be suggested in class) 
 

Last change 07/07/2026 12:46