Advanced Search
MyIDEAS: Login

Human Capital Externality, Knowledge Spillover, and Sustainable Economic Growth

Contents:

Author Info

  • Xiangcai Meng

    (Department of Trade and Economics, College of Management, Fuzhou University)

  • Azhong Ye

    (Department of Trade and Economics, College of Management, Fuzhou University)

Registered author(s):

    Abstract

    We attempt to introduce human capital externality and endogenous laborleisure decision into the analytical framework constructed by Uzawa (1965) and Lucas (1988) simultaneously, so as to explore the internal relationship among endogenous labor supply, human capital externality and sustainable economic growth as well as the choice problem of government¡¯s education policy. The main conclusions of this thesis are as follows: 1. The sound degree of household¡¯s time endowment allocation and the magnitude of human capital externality will work on the height of the steady state¡¯s growth rate on the balanced growth path. 2. The larger the subjective time preference and the stronger the leisure awareness is, the lower the steady state¡¯s growth rate of the country will be; the larger the output elasticity and education investment expenditure elasticity of knowledge spillover becomes, the higher the steady state¡¯s growth rate of the country will be; and vice versa. 3. The government can choose from carrying out lump-sum output taxation or education subsidy to stimulate the adjustment of private labor supply and human capital investment, such that the decentralized economy could be induced to the sustainable optimal growth state. We employ China¡¯s province level panel data to analyze empirically, all the main conclusions are supported by the empirical research; meanwhile, we also observed some puzzles which are different from the existing conclusions.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.aeconf.net/Articles/May2009/aef100108.pdf
    Download Restriction: no

    File URL: http://down.aefweb.net/AefArticles/aef100108.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Society for AEF in its journal Annals of Economics and Finance.

    Volume (Year): 10 (2009)
    Issue (Month): 1 (May)
    Pages: 155-198

    as in new window
    Handle: RePEc:cuf:journl:y:2009:v:10:i:1:p:155-198

    Contact details of provider:
    Web page: http://www.aeconf.net/
    More information through EDIRC

    Related research

    Keywords: Human capital externality; Knowledge spillover; Sustainable economic growth; Education policy; Panel data model;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. King, R.G. & Rebelo, S., 1988. "Public Policy And Economic Growth: Developing Neoclassical Implications," RCER Working Papers 225, University of Rochester - Center for Economic Research (RCER).
    2. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S103-26, October.
    3. Zvi Eckstein & Itzhak Zilcha, 1991. "The Effects of Compulsory Schooling on Growth, Income Distribution and Welfare," Boston University - Institute for Economic Development 20, Boston University, Institute for Economic Development.
    4. Sergio Rebelo, 1999. "Long Run Policy Analysis and Long Run Growth," Levine's Working Paper Archive 2114, David K. Levine.
    5. Enrico Moretti, 2002. "Estimating the Social Return to Higher Education: Evidence From Longitudinal and Repeated Cross-Sectional Data," NBER Working Papers 9108, National Bureau of Economic Research, Inc.
    6. Daron Acemoglu, 2007. "Introduction to Modern Economic Growth," Levine's Bibliography 122247000000001721, UCLA Department of Economics.
    7. Glomm, Gerhard & Ravikumar, B., 2003. "Public education and income inequality," European Journal of Political Economy, Elsevier, vol. 19(2), pages 289-300, June.
    8. Salvador Ortigueira, 1996. "Fiscal Policy in an Endogenous Growth Model with Human Capital Accumulation," Working Papers 9609, Centro de Investigacion Economica, ITAM.
    9. Song, E. Young, 2002. "Taxation, human capital and growth," Journal of Economic Dynamics and Control, Elsevier, vol. 26(2), pages 205-216, February.
    10. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
    11. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
    12. Tamura, Robert, 1991. "Income Convergence in an Endogenous Growth Model," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 522-40, June.
    13. Liu, Xuejun & Park, Albert & Zhao, Yaohui, 2010. "Explaining Rising Returns to Education in Urban China in the 1990s," IZA Discussion Papers 4872, Institute for the Study of Labor (IZA).
    14. Alan B. Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," NBER Working Papers 7591, National Bureau of Economic Research, Inc.
    15. Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers 163, Cowles Foundation for Research in Economics, Yale University.
    16. Zhang, Jie, 1996. " Optimal Public Investments in Education and Endogenous Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 98(3), pages 387-404.
    17. Duranton, Gilles, 2001. "Endogenous labor supply, growth and overlapping generations," Journal of Economic Behavior & Organization, Elsevier, vol. 44(3), pages 295-314, March.
    18. Marcus Scheiblecker & et al., 2000. "Moderate Economic Growth – Gaining Momentum in the Course of the Year. The Austrian Economy in 1999," WIFO Monatsberichte (monthly reports), WIFO, vol. 73(4), pages 243-284, April.
    19. Kodde, David A. & Ritzen, Josef M.M., 1985. "The demand for education under capital market imperfections," European Economic Review, Elsevier, vol. 28(3), pages 347-362, August.
    20. Zhang, Jie, 2003. "Optimal debt, endogenous fertility, and human capital externalities in a model with altruistic bequests," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1825-1835, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Wang, Chan, 2012. "A very preliminary survey on growth and development," MPRA Paper 39037, University Library of Munich, Germany.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:cuf:journl:y:2009:v:10:i:1:p:155-198. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Qiang Gao).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.