Abstract
We develop an endogenous growth model that integrates research and development (R&D) with human capital accumulation. Given decreasing returns to scale, together with a threshold constraint on human capital, in R&D, steady-state growth is determined solely by preferences and human capital technology: it is independent of research activity which, itself, is driven by human capital accumulation. In accordance with recent empirical evidence, the model implies that long-run growth is both independent of scale effects and invariant to a wide range of policies.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
