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Human Capital, R&D and Competition in Macroeconomic Analysis

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Author Info
Erik Canton (CPB Netherlands Bureau for Economic Policy Analysis)
Bert Minne (CPB Netherlands Bureau for Economic Policy Analysis)
Ate Nieuwenhuis (CPB Netherlands Bureau for Economic Policy Analysis)
Bert Smid (CPB Netherlands Bureau for Economic Policy Analysis)
Marc van der Steeg (CPB Netherlands Bureau for Economic Policy Analysis)

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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 the Netherlands Bureau for Economic Policy Analysis (CPB).

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Publisher Info
Paper provided by European Network of Economic Policy Research Institutes in its series Economics Working Papers with number 038.

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Length: 64 pages
Date of creation: Aug 2005
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Handle: RePEc:epr:enepwp:038

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

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This paper has been announced in the following NEP Reports: Cited by:
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  1. Verbic, Miroslav & Majcen, Boris & Cok, Mitja, 2009. "Education and Economic Growth in Slovenia: A Dynamic General Equilibrium Approach with Endogenous Growth," MPRA Paper 17817, University Library of Munich, Germany. [Downloadable!]
  2. Gelauff, George & Lejour, Arjan, 2006. "The new Lisbon Strategy: An estiamtion of the impact of reaching 5 Lisbon targets," MPRA Paper 16168, University Library of Munich, Germany. [Downloadable!]
  3. 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!]
  4. Viktoria Kocsis & Ruslan Lukach & Bert Minne & Victoria Shestalova & Nick Zubanov & Henry van der Wiel, 2009. "Relation entry, exit and productivity," CPB Documents 180, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  5. Verbic, Miroslav & Majcen, Boris & Cok, Mitja, 2009. "R&D and Economic Growth in Slovenia: A Dynamic General Equilibrium Approach with Endogenous Growth," MPRA Paper 17819, University Library of Munich, Germany. [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!]
  8. 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!]
  9. 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!]
  10. 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!]
  11. 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!]
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This page was last updated on 2009-12-2.

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