Reassessing the empirical validity of the human-capital augmented neoclassical growth model

Elias Dinopoulos () and Peter Thompson ()
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Elias Dinopoulos: Department of Economics, University of Florida, Gainesville, FL 32611, USA

Journal of Evolutionary Economics, 1999, vol. 9, issue 1, 135-154

Abstract: We reassess Mankiw, Romer and Weil's [mrw] version of the Solow model using, as did mrw, cross-sectional data to estimate the steady-state equation governing income per capita levels. The model fails in two critical areas. First, plausible factor shares obtained by mrw are not robust to the substitution of two measures of human capital that are more precise than the secondary school enrollment rates used by mrw. Second, the null hypothesis of an exogenous and identical level of technology in all countries is rejected. We also explain why the Solow model performed well despite the above shortcomings.

Keywords: Economic growth; Solow model; Technology; Human capital (search for similar items in EconPapers)
JEL-codes: O2 O3 (search for similar items in EconPapers)
Date: 1999-01-29
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Citations: View citations in EconPapers (12)

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