Augmented Solow Model with Mincerian Education and Transport Infrastructure Externalities
AbstractAccording to Crescezni and Rodríguez-Pose (2008) backward European states and regions should follow balanced strategies in which infrastructure development is coordinated with policies aimed at developing human capital and the innovative potential of regions. In order to assess their postulates we extend the analysis of Carstensen et al. (2009) further augmenting the neoclassical Solow Model to incorporate Mincerian schooling externalities and infrastructure externalities in a single theoretical framework. Infrastructure is introduced into the model in a manner similar to exogenous Hicks-neutral technological change, raising the overall efficiency of an economy. The theoretical model has been empirically tested for a panel of European economies in the period 1999–2010. Econometric estimates for a balanced panel data model bring interesting results. The overall fit of the model is considerable. In accordance with our expectations, the macroeconomic returns to human capital accumulation and infrastru cture are positive and statistically significant for a full sample of countries. Externalities are stronger for CEE transition economies than for non-CEE countries. The infrastructure externality is positive and statistically significant for CEE states only when we control for the level of openness of an economy. Results obtained are robust when taken with the modifications of the baseline empirical model.
Download InfoIf 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.
Bibliographic InfoArticle provided by Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies in its journal Czech Economic Review.
Volume (Year): 6 (2012)
Issue (Month): 2 (July)
Find related papers by JEL classification:
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
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.:
- Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, January.
- Cesar A. Calderon & Luis Serven, 2014.
"The Effects of Infrastructure Development on Growth and Income Distribution,"
Annals of Economics and Finance,
Society for AEF, vol. 15(2), pages 521-534, November.
- Calderon, Cesar & Serven, Luis, 2004. "The effects of infrastructure development on growth and income distribution," Policy Research Working Paper Series 3400, The World Bank.
- César Calderón & Luis Servén, 2005. "The Effects of Infrastructure Development on Growth and Income Distribution," DEGIT Conference Papers c010_056, DEGIT, Dynamics, Economic Growth, and International Trade.
- César Calderón & Luis Servén, 2004. "The Effects of Infrastructure Development on Growth and Income Distribution," Working Papers Central Bank of Chile 270, Central Bank of Chile.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Philippe Aghion & Peter Howitt, 2009.
"The Economics of Growth,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262012634, January.
- Kai Carstensen & Erich Gundlach & Susanne Hartmann, 2008.
"The Augmented Solow Model with Mincerian Schooling and Externalities,"
Kiel Working Papers
1408, Kiel Institute for the World Economy.
- Kai Carstensen & Erich Gundlach & Susanne Hartmann, 2009. "The Augmented Solow Model with Mincerian Schooling and Externalities," German Economic Review, Verein für Socialpolitik, vol. 10, pages 448-463, November.
- Jacek Zaucha & Krzysztof Najman, 2010. "Applying conclusions of the new economic geography for supporting elaboration of the spatial development strategies in the Baltic Sea Region," Working Papers 1003, Instytut Rozwoju, Institute for Development.
- William Easterly & Sergio Rebelo, 1994.
"Fiscal Policy and Economic Growth: An Empirical Investigation,"
NBER Working Papers
4499, National Bureau of Economic Research, Inc.
- Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December.
- Easterly, William & Rebelo, Sérgio, 1994. "Fiscal Policy and Economic Growth: An Empirical Investigation," CEPR Discussion Papers 885, C.E.P.R. Discussion Papers.
- Mankiw, N Gregory & Romer, David & Weil, David N, 1992.
"A Contribution to the Empirics of Economic Growth,"
The Quarterly Journal of Economics,
MIT Press, vol. 107(2), pages 407-37, May.
- Crescenzi, Riccardo & Rodriguez-Pose, Andres, 2008.
"Infrastructure endowment and investment as determinants of regional growth in the European Union,"
8/2008, European Investment Bank, Economics Department.
- Riccardo Crescenzi & Andrés Rodríguez-Pose, 2008. "Infrastructure endowment and investment as determinants of regional growth in the European Union," LSE Research Online Documents on Economics 23323, London School of Economics and Political Science, LSE Library.
- Guilherme Mendes Resende, 2011. "Multiple dimensions of regional economic growth: The Brazilian case, 1991−2000," Papers in Regional Science, Wiley Blackwell, vol. 90(3), pages 629-662, 08.
- Psacharopoulos, George & Patrinos, Harry Anthony, 2002.
"Returns to investment in education : a further update,"
Policy Research Working Paper Series
2881, The World Bank.
- George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
- Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
- I.P. Ottaviano, Gianmarco, 2008. "Infrastructure and economic geography: An overview of theory and evidence," EIB Papers 6/2008, European Investment Bank, Economics Department.
- Wei-Bin Zhang, 2013. "Education, Endogenous Human Capital, and Monetary Economic Growth with MIU Approach," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 7(2), pages 100-118, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lenka Stastna).
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.