This textbook is an introduction to the newer features of growth theory that are particularly useful in examining the issues of economic development. Growth theory provides a rich and versatile analytical framework through which fundamental questions about economic development can be examined....

Education is added to the standard Neoclassical growth model by calibrating a human capital technology to the empirical evidence on schooling. Simulation experiments patterned after King and Rebelo (1993 American Economic Review 83, 908--931) are conducted. When agents act as if they are...