Education, Innovation, and Long-Run Growth
AbstractThis study augments a second-generation Schumpeterian growth model to employ human capital explicitly. We clarify the general-equilibrium interactions of subsidy policies to R&D and human capital accumulation in a unified framework. Despite a standard intuition that subsidizing these growth-enhancing activities is always mutually growth promoting, we find a symmetric effects for subsidieson R&D and those on education. Our theoretical result of asymmetric policy effects provides an important empirical caveat that empirical researchers may find false negative relationships between education subsidies and the output growth rate, if they merely rely on the standard human capital model.
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Bibliographic InfoPaper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0731.
Date of creation: Feb 2009
Date of revision: Mar 2009
Other versions of this item:
- Katsuhiko Hori & Katsunori Yamada, 2011. "Education, Innovation, and Long-Run Growth," KIER Working Papers 798, Kyoto University, Institute of Economic Research.
- Katsuhiko Hori & Katsunori Yamada, 2008. "Education, Innovation, and Long-Run Growth," Keio/Kyoto Joint Global COE Discussion Paper Series 2008-041, Keio/Kyoto Joint Global COE Program.
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-11 (All new papers)
- NEP-DEV-2009-07-11 (Development)
- NEP-DGE-2009-07-11 (Dynamic General Equilibrium)
- NEP-EDU-2009-07-11 (Education)
- NEP-HRM-2009-07-11 (Human Capital & Human Resource Management)
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