An extension to the neoclassical growth modelto Estimate Growth and Level Effects

B. Rao, Rup Singh and Fozia Nisha

MPRA Paper from University Library of Munich, Germany

Abstract: The neoclassical growth model was extended by Mankiw, Romer and Weil (1992) to estimate the level effects of additional factors like human capital. We suggest a further extension to capture their permanent growth effects. Time series data from Fiji are used to show that the growth effect of human capital, although small, is significant. Furthermore, in our sample the specifications with a permanent growth effect performed better than specifications with only level effects.

Keywords: The Solow Growth Model; Production Function; Shift Variables; Human Capital Level and Growth Effects (search for similar items in EconPapers)
JEL-codes: I20 I29 O1 O11 O30 O40 O56 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-dev and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:2186

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