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Human capital and technology in growth

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  • Alberto Bucci

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Abstract

This paper studies the economic determinants of the inter-sectoral allocation of skills within an R&Dbased growth model with human capital accumulation and imperfect competition. Using an aggregateR&D technology displaying constant returns to scale in human capital, I find that steady-state growth is driven only by skills accumulation and is independent of scale effects. In the model imperfect competition has no growth effect, while influencing the allocation of human capital to the different economic activities. Contrary to general wisdom, the share of resources invested in R&D turns out not to be monotonically increasing in the equilibrium output growth rate.

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File URL: http://wp.demm.unimi.it/tl_files/wp/2001/DEMM-2001_018wp.pdf
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Bibliographic Info

Paper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2001-18.

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Date of creation: 01 Jan 2001
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Handle: RePEc:mil:wpdepa:2001-18

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Keywords: Endogenous Growth; R&D; Human Capital;

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  1. Stokey, Nancy L, 1988. "Learning by Doing and the Introduction of New Goods," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 701-17, August.
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