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Human-capital spillover, population and R&D-based growth

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  • Diwakar Bharat
  • Sorek Gilad

    (Economics Department, Auburn University, Auburn Alabama, United States of America)

Abstract

We study two-sector R&D model with endogenous human capital accumulation. Allowing for fractional human capital spillover from parents to their offspring, which are subject to congestion in fertility rate, we establish non-monotonic relations between population growth and economic growth. These non-monotonic relations, which are polynomial in general, are determined by the base level of human capital spillover and the magnitude of the congestion effect: a U shape relation can arise under low congestion factor, whereas a hump shape may present for high congestion factor. Hence this work contributes to the recent line of modified R&D-based growth models, aimed to align theory with the mixed empirical data on the relation between population growth and economic prosperity.

Suggested Citation

  • Diwakar Bharat & Sorek Gilad, 2017. "Human-capital spillover, population and R&D-based growth," The B.E. Journal of Macroeconomics, De Gruyter, vol. 17(1), pages 1-17, January.
    • Handle: RePEc:bpj:bejmac:v:17:y:2017:i:1:p:17:n:8
    DOI: 10.1515/bejm-2016-0029
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    References listed on IDEAS

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    Cited by:

    1. Ziesemer, Thomas, 2019. "Can we have growth when population is stagnant? Testing linear growth rate formulas and their cross-unit cointegration of non-scale endogenous growth models," MERIT Working Papers 2019-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Thomas H.W. Ziesemer, 2020. "Can we have growth when population is stagnant? Testing linear growth rate formulas of non-scale endogenous growth models," Applied Economics, Taylor & Francis Journals, vol. 52(13), pages 1502-1516, March.
    3. Bharat Diwakar & Gilad Sorek, 2016. "Dynastic Altruism, Population, and R&D based Growth," Economics Bulletin, AccessEcon, vol. 36(4), pages 2003-2009.
    4. Ziesemer, Thomas, 2017. "Testing linear growth rate formulas of non-scale endogenous growth models," MERIT Working Papers 2017-036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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