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Human capital formation, learning by doing and the government in the process of economic growth
Author(s) -
Greiner Alfred
Publication year - 2012
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/j.1467-9485.2011.0569.x
Subject(s) - economics , human capital , endogenous growth theory , learning by doing , investment (military) , physical capital , government (linguistics) , capital deepening , budget constraint , welfare , debt , constraint (computer aided design) , product (mathematics) , production (economics) , capital intensity , capital (architecture) , financial capital , monetary economics , microeconomics , macroeconomics , capital formation , market economy , engineering , philosophy , mathematics , law , history , linguistics , archaeology , geometry , political science , mechanical engineering , politics
We present an endogenous growth model with human capital and learning by doing. Human capital is not an input factor in the production process of final output but it affects the ability to build up knowledge capital as a by‐product of cumulated investment (learning by doing). Human capital is formed in the schooling sector that is financed by the government. The government may run into debt but obeys the inter‐temporal budget constraint. The article analyzes the structure of the model and studies the effects of different budgetary policies as regards the balanced growth rate, transition dynamics and with respect to welfare.