Resource augmenting R&D with heterogeneous labor supply

Francesco Ricci, Jean-Pierre Amigues and Michel Moreau
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Michel Moreau: LERNA - Economie des Ressources Naturelles - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - CEA - Commissariat à l'énergie atomique et aux énergies alternatives

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Abstract: The effective labor possibilities frontier (ELPF) is defined as the set of statically efficient allocations of labor inputs in the competing tasks of production and R&D. It is concave if labor is heterogeneous. In an R&D-based growth model with an essential non-renewable natural resource, the shape of the ELPF affects the optimal speed of the transition. If resource endowment is poor, transition is slower and involves a smaller R&D effort, and slower growth in per capita consumption, in the case of a heterogeneous labor force as compared to a homogeneous one. Policies that modify the distribution of skills in the population imply shifts of the ELPF. We provide a taxonomy of possible shifts of the ELPF, and link them to education policy or demographic trends.

Date: 2008
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Published in Environment and Development Economics, 2008, 13 (6), pp.719-745. ⟨10.1017/S1355770X08004622⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03062226

DOI: 10.1017/S1355770X08004622

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