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Education, Research, and Economic Growth

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Author Info

  • Caspari, Volker
  • Rehme, Günther
  • Rubart, Jens

Abstract

It is obvious that the German economy exhibits a significant decline in economic growth during the last two decades. Although the German economy has still to overcome the burden of the reunification in 1990 it is shown that this burden might be only one reason of this decline. In this study we follow the new growth theory and develop and com-pare indicators for the educational and R&D systems of the U.S. and Germany. In this line, we show that on average the German system can compete with the U.S. one, but a lack of human capital at very high skill levels becomes obvious. This lack, particularly leads to a lower performance of German R&D and could, therefore, possibly explain the decline of the German growth trend.

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Bibliographic Info

Paper provided by Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL) in its series Darmstadt Discussion Papers in Economics with number 21332.

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Date of creation: Aug 2004
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Publication status: Published in Darmstadt Discussion Papers in Economics . 138 (2004-08)
Handle: RePEc:dar:ddpeco:21332

Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/21332/
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Related research

Keywords: Human Capital; Research and Development; Efficiency of Educational Systems; Sources of Economic Growth;

References

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  1. Ingram, Beth F. & Neumann, George R., 2006. "The returns to skill," Labour Economics, Elsevier, vol. 13(1), pages 35-59, February.
  2. Edward P. Lazear, 2001. "Educational Production," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 777-803, August.
  3. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October.
  4. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  5. Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December.
  6. Barbara Sianesi & John Van Reenen, 2003. "The Returns to Education: Macroeconomics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(2), pages 157-200, 04.
  7. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  8. Alwyn Young, 1998. "Growth without Scale Effects," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 41-63, February.
  9. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
  10. Jones, Charles I, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 495-525, May.
  11. Greiner, Alfred & Rubart, Jens & Semmler, Willi, 2004. "Economic growth, skill-biased technical change and wage inequality: A model and estimations for the US and Europe," Journal of Macroeconomics, Elsevier, vol. 26(4), pages 597-621, December.
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Cited by:
  1. Schiffbauer, Marc, 2006. "Theoretical and methodological study on the role of public policies in fostering innovation and growth," Papers DYNREG04, Economic and Social Research Institute (ESRI).

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