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Endogenous cycles and human capital

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  • Dimitrios Varvarigos

    (University of Leicester)

Abstract

Existing evidence shows that human capital investment is countercyclical. In a dynamic model, I show that countercyclical investment in human capital arises as a result of a parametric combination relating to preferences and technologies. This countercyclical reaction is responsible for complex dynamics in the evolution of human capital, thus initiating a self-sustained sequence of events that generate endogenous cycles.

Suggested Citation

  • Dimitrios Varvarigos, 2017. "Endogenous cycles and human capital," Journal of Economics, Springer, vol. 120(1), pages 31-45, January.
    • Handle: RePEc:kap:jeczfn:v:120:y:2017:i:1:d:10.1007_s00712-016-0488-2
    DOI: 10.1007/s00712-016-0488-2
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    Cited by:

    1. Hiroshi Fujiu, 2021. "Business Cycles in a Two-Sided Altruism Model," Mathematics, MDPI, vol. 9(17), pages 1-12, August.

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    More about this item

    Keywords

    Human capital; Cycles;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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