The Love Aspects of Human Capital and the Economic Activity of Countries
The influence of non-economic factors and forces on economic activities and their outcomes is undeniable. Love, being so central to many human activities, should similarly have some effects on the economic activity of nations. This paper (a) builds a simple but innovative model, (b) imposes it on a limited data set to estimate the effects of love experience and feeling on the economic activity of a group of 133 countries, and (3) compares such effects to those of other determinants of the economic activity, including Barro-Lee human capital, openness, and physical capital, as well as a broad measure of national well-being, HDI. The results strongly favor physical capital followed, by HDI and Barro-Lee human capital. Although small in magnitude, love effects are more statistically significant than those of openness. There appears to be some multicollinearity and model functional issues which challenge the robustness of the estimates and call for further research. However, the technical efficiency of the estimates is reasonable, so that one may conclude that love is important, but not critical to economic activity. The policy implications call for more investment in physical capital, schooling, and in the overall improvement of human development than in love experience and feeling, even though those are important too.
|Date of creation:||05 Dec 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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.:
- Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
- Mincer, Jacob, 1984.
"Human capital and economic growth,"
Economics of Education Review,
Elsevier, vol. 3(3), pages 195-205, June.
- Fernández, Raquel & Guner, Nezih & Knowles, John, 2001.
"Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality,"
CEPR Discussion Papers
3040, C.E.P.R. Discussion Papers.
- Raquel Fernández & Nezih Guner & John Knowles, 2005. "Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 120(1), pages 273-344.
- Raquel Fernandez & Nezih Guner & John Knowles, 2001. "Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality," NBER Working Papers 8580, National Bureau of Economic Research, Inc.
- Raquel Ferndez & Nezih Guner & John Knowles, 2001. "Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality," Penn CARESS Working Papers d3d043317c8e26c4039c21aa0, Penn Economics Department.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, May.
- Jones, Charles I, 1997.
Journal of Economic Growth,
Springer, vol. 2(2), pages 131-53, July.
- Harris, DeVerle P., 1993. "Mineral resource stocks and information," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 3, chapter 21, pages 1011-1076 Elsevier.
- Fali Huang & Ginger Zhe Jin & Lixin Colin Xu, 2012. "Love and Money by Parental Matchmaking: Evidence from Urban Couples in China," American Economic Review, American Economic Association, vol. 102(3), pages 555-60, May.
- Dennis D. Kimko & Eric A. Hanushek, 2000.
"Schooling, Labor-Force Quality, and the Growth of Nations,"
American Economic Review,
American Economic Association, vol. 90(5), pages 1184-1208, December.
- Jerik Hanushek & Dennis Kimko, 2006. "Schooling, Labor-force Quality, and the Growth of Nations," Educational Studies, Higher School of Economics, issue 1, pages 154-193.
- White, Halbert, 1980. "Using Least Squares to Approximate Unknown Regression Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 149-70, February.
- James J. Heckman & Lance J. Lochner & Petra E. Todd, 2003.
"Fifty Years of Mincer Earnings Regressions,"
NBER Working Papers
9732, National Bureau of Economic Research, Inc.
- Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Voxi Heinrich S Amavilah & Richard T. Newcomb, 2004. "Economic Growth and the Financial Economics of Capital Accumulation under Shifting Technological Change," GE, Growth, Math methods 0404001, EconWPA.
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:52686. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.