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Capital Augmenting and Labor Augmenting Approach in Measuring Contribution of Human Capital and Education to Economic Growth

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  • Milenko Popovic

    (INSTITUTE OF ECONOMIC SCIENCES, Belgrade, Serbia & Montenegro)

Abstract

In this paper an effort has been made to unveil some hidden and implicit assumptions that has been used in different models dealing with analysis and measurement of contribution of human capital to economic growth. In order to do it we started from the general production function with heterogeneous labor input and general production function with heterogeneous human and physical capital. By introducing different assumptions regarding the partial elasticity of substitution between different factors of production we derived different models for human capital contribution. Apart from making hidden assumptions of existing models explicit we also derived several others models that can be used for the same purposes.

Suggested Citation

  • Milenko Popovic, 2005. "Capital Augmenting and Labor Augmenting Approach in Measuring Contribution of Human Capital and Education to Economic Growth," Development and Comp Systems 0502002, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpdc:0502002
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    References listed on IDEAS

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    Cited by:

    1. Mirjana cizmovic & Jelena Jankovic & Milenko Popovic, 2015. "Growth Anatomy of Croatian Economy," Ekonomija Economics, Rifin d.o.o., vol. 22(1), pages 159-216.
    2. Milenko Popovic, 2007. "Rising Wage Inequality, Rate Of Return On Investment In Education, And Cost Of Education," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 3(5), pages 35-58.
    3. Darko Lazarov & Goce Petreski, 2016. "Human Capital as a Binding Constraint to Economic Growth: The Case of Macedonia," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 18(1), pages 35-70, June.

    More about this item

    Keywords

    Economic Growth; Growth Accounting; Human Capital; Capital of Education; Partial Elasticity of Sustitution;

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P - Economic Systems

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