Scale effects, saving and factor shares in a human capital-based growth model with physical capital accumulation

Alberto Bucci ()

Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano

Abstract: Using a balanced-growth model with physical and human capital accumulation, this article analyzes quantitatively the long run effects of changes in the saving rate and in income distribution (i. e. , the shares of physical and human capital in income) on investment in human capital, growth of income, and the ratio of human to physical capital. In the long run the ratio of physical to human capital is constant, so that these two production factors can grow at the same rate. This rate is a function of the economy’s exogenous technological and preference parameters and depends positively on the share of skills invested in human capital formation. We also find that population growth is neither necessary nor conducive to economic growth and that the level of real income depends linearly on the level of human capital and is independent of population size.

Keywords: Economic Growth; Human and Physical Capital Investment; Scale Effects (search for similar items in EconPapers)
JEL-codes: J22 J24 O41 (search for similar items in EconPapers)
Date: 2008-07-26
New Economics Papers: this item is included in nep-dev, nep-dge, nep-fdg and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://wp.demm.unimi.it/files/wp/2008/DEMM-2008_029wp.pdf (application/pdf)

Related works:
Journal Article: Scale Effects, Savings and Factor Shares in a Human Capital-based Growth Model with Physical Capital Accumulation (2009)
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:mil:wpdepa:2008-29

Access Statistics for this paper

More papers in Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano Via Conservatorio 7, I-20122 Milan - Italy. Contact information at EDIRC.
Bibliographic data for series maintained by DEMM Working Papers ( this e-mail address is bad, please contact ).