Public Education, Technological Change and Economic
Center for European Governance and Economic Development Research Paper No. 149
37 Pages Posted: 15 Jan 2013
Date Written: January 14, 2013
Abstract
We introduce publicly funded education in R&D-based economic growth theory. The framework allows us to i) incorporate a realistic process of human capital accumulation for industrialized countries, ii) reconcile R&D-based growth theory with the empirical evidence on the relationship between economic prosperity and population growth, iii) revise the policy invariance result of semi-endogenous growth frameworks, and iv) show that the transitional effects of an education reform tend to be qualitatively different from its long-run impact.
Keywords: human capital accumulation, technological progress, scale-free economic growth, public education policy
JEL Classification: I25, J24, O11, O31, O41
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