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Human capital, R&D, and competition in macroeconomic analysis

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Author Info
Eric Canton
Bert Minne ()
Ate Nieuwenhuis ()
Marc van der Steeg ()

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Abstract

Long-run per capita economic growth is driven by productivity growth. Major determinants of productivity are investments in education and research, and the intensity of competition on product markets. While these ideas have been incorporated into modern growth theories and tested in empirical analyses, they have not yet found their way to applied macroeconomic models used to forecast economic developments. In this paper, we discuss various options to include human capital, R&D, and product market competition in a macroeconomic framework. We also study how policy can affect the decisions to build human capital or to perform research, and how competition policy impacts on macroeconomic outcomes. We finally sketch how these mechanisms can be implemented into the large models used at CPB.

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File URL: http://www.cpb.nl/eng/pub/cpbreeksen/document/91/doc91.pdf
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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Documents with number 91.

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Date of creation: Jul 2005
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Handle: RePEc:cpb:docmnt:91

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Related research
Keywords: Human capital; R&D; competition; applied macroeconomic mode;

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Find related papers by JEL classification:
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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  1. Arjan Lejour & Paul Veenendaal & Gerard Verweij & Nico van Leeuwen, 2006. "Worldscan; a model for international economic policy analysis," CPB Documents 111, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  2. Laura Thissen & Sjef Ederveen, 2006. "Higher education: Time for coordination on a European level?," CPB Discussion Papers 68, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  3. Albu, Lucian Liviu, 2008. "Trends in Structural Changes and Convergence in EU," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 5(1), pages 91-101, March. [Downloadable!]
  4. George Gelauff & Arjan Lejour, 2006. "Five Lisbon highlights; the economic impact of reaching these targets," CPB Documents 104, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  5. Marc van der Steeg, 2005. "Why should governments intervene in education, and how effective is education policy," CPB Memoranda 122, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  6. Harold Creusen & Björn Vroomen & Henry van der Wiel & Fred Kuypers, 2006. "Dutch retail trade on the rise?," CPB Documents 137, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  7. Henk Don & Johan Verbruggen, 2006. "Models and methods for economic policy; 60 years of evolution at CPB," CPB Discussion Papers 55, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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