The Impact on Growth and Distribution of Public Investments in Human Capital Accumulation and Economic Infrastructure

Alexandre Rands () and Analice Amazonas ()
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Alexandre Rands: Datamétrica Consultoria, Pesquisa e Telemarketing
Analice Amazonas: Datamétrica Consultoria, Pesquisa e Telemarketing
Authors registered in the RePEc Author Service: Alexandre Rands Barros ()

No 28, Working Papers from Datamétrica Consultoria Econômica

Abstract: Development policies have been a problem for economists for a long time. Latin American Structuralists emphasized the role of investments in economic infrastructure as a crucial policy to promote development, while the New Growth Literature has mainly emphasized the role of investments in human capital. This paper relies on a model in the Endogenous Growth tradition to show that these two alternative policies are not distributionally neutral. While investments in economic infrastructures concentrates income in the hands of capitalists, investments in human capital distribute income towards workers.

Keywords: endogenous growth model; income distribution; public investments. (search for similar items in EconPapers)
Pages: 26 pages
Date: 1996, Revised 1996
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Published in XIV Encontro Latino-Americano da Sociedade de Econometria, 1996.

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