Growth with work ethics
Economic development is the result of hard work, discipline and frugality – qualities, which can be learned through an education process. This is the gist of Max Weber's writings on the development of capitalism, which I have modeled in this paper. The model shows how an educational sector that produces a composite of work ethics and skills can lead to sustained growth. Human capital in this model reduces the disutility of effort exertion and thereby induces people to work harder. Along balanced growth path, effort exertion is constant in this mode. The model shows that growth is an increasing function of effort exertion which itself is a function of a number of efficiency parameters. Historical anecdotal evidence and a regression analysis looking at the effects of formal education on growth with a new interpretation are presented in support of the model.
|Date of creation:||Jun 2004|
|Date of revision:|
|Contact details of provider:|| Postal: Corso Unione Sovietica, 218bis - 10134 Torino - Italy|
Phone: +39 011 6706060
Fax: +39 011 6706062
Web page: http://www.esomas.unito.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- King, Robert G & Plosser, Charles I & Rebelo, Sergio T, 2002.
"Production, Growth and Business Cycles: Technical Appendix,"
Springer;Society for Computational Economics, vol. 20(1-2), pages 87-116, October.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- George A. Akerlof & Rachel E. Kranton, 2005. "Identity and the Economics of Organizations," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 9-32, Winter.
- George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Congleton, Roger D., 1991. "The economic role of a work ethic," Journal of Economic Behavior & Organization, Elsevier, vol. 15(3), pages 365-385, May.
- Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers 163, Cowles Foundation for Research in Economics, Yale University.
- Esfahani, Hadi Salehi, 1991. "Reputation and uncertainty Toward an explanation of quality problems in competitive LDC markets," Journal of Development Economics, Elsevier, vol. 35(1), pages 1-32, January.
When requesting a correction, please mention this item's handle: RePEc:icr:wpicer:14-2004. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Simone Pellegrino)
If references are entirely missing, you can add them using this form.