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The Impact on Growth and Distribution of Public Investments in Human Capital Accumulation and Economic Infrastructure

Author

Listed:
  • Alexandre Rands

    () (Datamétrica Consultoria, Pesquisa e Telemarketing)

  • Analice Amazonas

    () (Datamétrica Consultoria, Pesquisa e Telemarketing)

Abstract

Development policies have been a problem for economists for a long time. Latin American Structuralists emphasized the role of investments in economic infrastructure as a crucial policy to promote development, while the New Growth Literature has mainly emphasized the role of investments in human capital. This paper relies on a model in the Endogenous Growth tradition to show that these two alternative policies are not distributionally neutral. While investments in economic infrastructures concentrates income in the hands of capitalists, investments in human capital distribute income towards workers.

Suggested Citation

  • Alexandre Rands & Analice Amazonas, 1996. "The Impact on Growth and Distribution of Public Investments in Human Capital Accumulation and Economic Infrastructure," Working Papers 28, Datamétrica Consultoria Econômica, revised 1996.
  • Handle: RePEc:dtm:wpaper:28
    as

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    File URL: ftp://repec.datametrica.com.br/RePEc/dtm/wpaper/TheImpactonGrowth28.PDF
    File Function: Revised version, 1996.
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