Sustained Output Growth Under Uncertainty: A Simple Model With Human Capital

Dimitrios Varvarigos ()
Additional contact information
Dimitrios Varvarigos: Dept of Economics, Loughborough University

Discussion Paper Series from Department of Economics, Loughborough University

Abstract: In a model where agents use their labour/education choice to adjust their consumption profile over time, I show that the impact of uncertainty on growth depends, critically, on agents’ attitudes towards risk, reflected by the coefficient of relative risk aversion. In this respect, the well known result from the literature on ‘saving under uncertainty’ can be extended into a broader context, whereby the intertemporal profile of consumption is determined via human capital accumulation rather than saving and physical capital investment.

Keywords: Growth; Uncertainty (search for similar items in EconPapers)
JEL-codes: O41 (search for similar items in EconPapers)
Date: 2007-08, Revised 2007-08
New Economics Papers: this item is included in nep-dge, nep-edu and nep-hrm
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.lboro.ac.uk/departments/ec/RePEc/lbo/lbowps/DV_2007_20.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.lboro.ac.uk/departments/ec/RePEc/lbo/lbowps/DV_2007_20.pdf [301 Moved Permanently]--> https://www.lboro.ac.uk/departments/ec/RePEc/lbo/lbowps/DV_2007_20.pdf)

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:lbo:lbowps:2007_20

Access Statistics for this paper

More papers in Discussion Paper Series from Department of Economics, Loughborough University Contact information at EDIRC.
Bibliographic data for series maintained by Huw Edwards ().