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Education, Endogenous Human Capital, and Monetary Economic Growth with MIU Approach

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  • Wei-Bin Zhang

    ()
    (Ritsumeikan Asia Pacific University, Oita-ken, Japan)

Abstract

This study builds a monetary growth model with inflation policy and education. The model is a synthesis of the Uzawa-Lucas two-sector growth model and traditional monetary model with the money-in-utility (MIU) approach. We show how money, physical capital and human capital interact over time under exogenous inflation policy in a free market economy. The dynamics of the economy is described by three differential equations. We show that the monetary economic system has a saddle equilibrium point. We simulate motion of the economic system and carry out comparative statics analysis with regards to the monetary policy, propensities to save wealth and to receive education.

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Bibliographic Info

Article provided by Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies in its journal Czech Economic Review.

Volume (Year): 7 (2013)
Issue (Month): 2 (July)
Pages: 100-118

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Handle: RePEc:fau:aucocz:au2013_100

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Related research

Keywords: Economic growth; MIU approach; inflation policy; physical capital; education and human capital; learning through consuming;

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