EconPapers    
Economics at your fingertips  
 

Constrained Efficiency in a Human Capital Model

Yena Park

American Economic Journal: Macroeconomics, 2018, vol. 10, issue 3, 179-214

Abstract: This paper investigates whether capital and human capital are over-accumulated in an incomplete market economy. As in Davila et al. (2012), whether capital is over-accumulated depends on how the pecuniary externalities affect insurance and redistribution. In a human capital economy, however, not only capital but also human capital generates externalities and an additional channel arises that has implications for the overaccumulation (under-accumulation) of capital (human capital). The income sources of the poor and the correlation between wealth and human capital are crucial for the implication of pecuniary externalities. Realistically calibrated models exhibit under-accumulation (overaccumulation) of capital (human capital).

JEL-codes: D52 D62 I26 J22 J24 J31 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/mac.20160405
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/mac.20160405 (application/pdf)
https://www.aeaweb.org/content/file?id=7420 (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... z5N1olplOr1DzI-7usBg (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... bxDvDz4vMKZ6K2SEGYJh (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aejmac:v:10:y:2018:i:3:p:179-214

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Journal: Macroeconomics is currently edited by Simon Gilchrist

More articles in American Economic Journal: Macroeconomics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2019-05-18
Handle: RePEc:aea:aejmac:v:10:y:2018:i:3:p:179-214