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General equilibrium models on skill acquisition and economic development: some comments

Deme et al. (2005, DFN) present a general equilibrium model for the case of Lesotho with a rising step skill acquisition function. DFN show that only a large amount of government expenditure on education, training and skill acquisition can pull the economy out of its inertia. As a comment on DFN, Bandopadhyay (2006) develops a similar general equilibrium model and analyzes the impact of government expenditure on skill acquisition. He finds that the outcome on the economy is independent of the amount of the government spending. By comparing the two models I show, that Bandopadhyay's findings replicate one aspect of the findings of DFN and do not add additional insight to the discussion.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 26912.

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Date of creation: 22 Nov 2010
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Handle: RePEc:pra:mprapa:26912
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  1. Mamit Deme & David Franck & Nadeem Naqvi, 2005. "A General Equilibrium Skill Acquisitions Model Of Development For Lesotho," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 30(1), pages 15-29, June.
  2. Bandopadhyay, Titas Kumar, 2006. "Skill acquisition and economic development — some comments," MPRA Paper 1759, University Library of Munich, Germany.
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