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Human Capital, Product Quality, And Growth

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  • Nancy L. Stokey

Abstract

A growth model is developed in which finite-lived individuals invest in human capital, and investments have a positive external effect on the human capital of later cohorts. Heterogeneous labor is the only factor of production, and higher-quality labor produces higher-quality goods. Stationary growth paths, along which human capital and the quality of consumption goods grow at a common, constant rate, are studied. It is also shown that if a small economy is very advanced or very backward relative to the rest of the world, then its rate of investment in human capital is lower under free trade than under autarky.

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  • Nancy L. Stokey, 1990. "Human Capital, Product Quality, And Growth," NBER Working Papers 3413, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:3413
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    1. Findlay, Ronald & Kierzkowski, Henryk, 1983. "International Trade and Human Capital: A Simple General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 957-978, December.
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    Cited by:

    1. Angelina Shpilevaya, 2022. "Overview of General Equilibrium Models with Imperfect Financial Markets and the Accumulation of Human Capital," Russian Journal of Money and Finance, Bank of Russia, vol. 81(3), pages 54-71, September.
    2. Roubini, Nouriel & Sala-i-Martin, Xavier, 1992. "Financial repression and economic growth," Journal of Development Economics, Elsevier, vol. 39(1), pages 5-30, July.
    3. Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
    4. Sala-i-Martin, Xavier, 1990. "Lecture Notes on Economic Growth: Five Prototype Models of Endogenous Growth. Volume II," Center Discussion Papers 321324, Yale University, Economic Growth Center.
    5. Pyastolov, S.M., 2007. "Norms as indicators of human capital investments effectiveness," MPRA Paper 44451, University Library of Munich, Germany.
    6. Renelt, David, 1991. "Economic growth : a review of the theoretical and empirical literature," Policy Research Working Paper Series 678, The World Bank.
    7. Nour, Samia, 2011. "Education, training and skill development policies in Sudan: Macro-micro overview," MERIT Working Papers 2011-032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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