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Human Capital and Business Cycle Persistence

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Author Info
Roberto Perli () (University of Pennsylvania, Dept. of Economic, 3718 Locust Walk Philadelphia, PA 19104)
Plutarchos Sakellaris

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Abstract

In this paper we show that a two sector model with human capital is able to generate persistence in output growth comparable to that observed in the postwar U.S. data. The key feature is a relatively low elasticity of substitution between human capital and raw labor in the production of human capital.

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Publisher Info
Paper provided by University of Pennsylvania in its series Home Pages with number _044.

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Date of creation: Jan 1996
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Handle: RePEc:wop:pennhp:_044

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