Human Capital Accumulation, Lifetime Duration and the Process of Economic Development
AbstractThis paper presents a microfounded theory of long-term development. We model the interplay between economic variables, namely the process of human capital formation and technological progress, and the biological constraint of finite lifetime expectancy. All these processes affect each other and are endogenously determined. The model is analytically solved and simulated for illustrative purposes. The resulting dynamics reproduce a long period of stagnant growth as well as an endogenous and rapid transition to a situation characterized by permanent growth. This transition can be interpreted as industrial revolution. Historical and empirical evidence is discussed and shown to be in line with the predictions of the model.
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Bibliographic InfoPaper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 198.
Date of creation: 04 Jun 2003
Date of revision:
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long-term development; endogenous lifetime duration; endogenous life expectancy; human capital; technological progress; growth externalities;
Find related papers by JEL classification:
- E19 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Other
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- 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-2003-06-16 (All new papers)
- NEP-DEV-2003-06-16 (Development)
- NEP-DGE-2003-06-16 (Dynamic General Equilibrium)
- NEP-LAB-2003-06-16 (Labour Economics)
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