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 gr...

We introduce publicly funded education into R&D-based economic growth theory. Our framework allows us to i) explicitly describe a realistic process of human capital accumulation within these types of growth models, ii) reconcile semi-endogenous growth theory with the empirical evidence on the relationship between economic development and population growth, and iii) revise the policy invariance ...

This research suggests that the distribution of land within and across countries affected the nature of the transition from an agrarian to an industrial economy generating diverging growth patterns across countries. Land abundance, which was beneficial in early stages of development, generated in later stages a hurdle for human capital accumulation and economic growth among countries in which l...

The purpose of this paper is to study the Soviet economic growth from 1950 to 1991, focusing on the questions of capital accumulation and structural change. The period will be divided into three phases, corresponding to different levels of economic growth and structural features. The first phase, from the 1950s to the beginning of 1970s, corresponds to a regime of extensive accumulation of capi...

North-South Trade Liberalization and Returns to Skill in the South: The Case of Mexico This study examines the effect of NAFTA, an instance of North-South trade liberalization, on returns to skill in Mexico. Mexico is abundant in low-skill workers relative to the US and Canada, and so, by the Hecksher-Ohlin-Samuelson trade model, NAFTA ought to have raised the relative earnings of low-skill wor...

This paper demonstrates that considering alternative means of human capital accumulation, such as learning-by-doing, overturns the presumption that formal education is unconditionally bene ̄cial for economic growth. It analyzes a model in which the average level of human capital creates externalities in future human capital accumulation and individuals can augment their human capital with work e...

The theoretical richness and variety of the new growth literature can make it difficult to capture the essence of growth models. With this paper, we wish to provide one possible integrating view of the nature of the growth generating processes. Revisiting the models that constitute the core of growth theory, we expose analytically the main mechanisms through which long-run growth can be deliver...

In this paper we investigate three sources of economic growth and evolution of world income distribution during the 90’s: (i) technological change, (ii) efficiency change (the catching-up) and (iii) capital deepening. Our research is an extension to recent study of Kumar and Russell (2002), which we complement in two ways: we considering a more recent period (the 90’s instead of 1965-90) and, a...

Intermediate goods are another produced factor of production, like capital. Simple examples suggest that the multiplier associated with intermediate goods can be substantial, even larger than the one resulting from physical capital accumulation. This paper evaluates this insight using a model in which N goods are produced using all of the other goods as intermediate inputs. Calibrating the mode...

The role of intangible assets in the economy has been investigated under various lights. The most general observation is that the importance of intangible materials, assets, and consumption—as opposed to physical materials, assets and consumption—has continuously been rising in the current economy. More precisely, it is noted that the core characteristic of intangibles in the economy has to do ...