1. The Mathematics of Modern Growth Theory using
Mathematica
Stephen Kinsella
Department of Economics
Kemmy Business School,
University of Limerick
stephen.kinsella@ul.ie
www.stephenkinsella.net

2. Plan
What is Growth?
Importance
Theories of Growth
Mathematica and Growth Theory
Demonstrations

3. What is Growth?
Year on Year increase in productive capacity
Measured by change in Gross Domestic
Product: Output of goods and services in a
year
Growth is
(GDP (today) - GDP (yesterday))
/GDP (yesterday)

4. Measure is not without
Robert Kennedy on GDP
its problems

5. “It measures everything
but that which makes life
worthwhile”
–Robert Kennedy

6. But Growth is Vital