Research, Development and Human Capital Accumulation
Posted: 17 Dec 1999
We develop an endogenous growth model that integrates research and development (R&D) with human capital accumulation. Given decreasing returns to scale, together with a threshold constraint on human capital, in R&D, steady-state growth is determined solely by preferences and human capital technology; it is independent of research activity which, itself, is driven by human capital accumulation. In accordance with recent empirical evidence, the model implies that long-run growth is both independent of scale effects and invariant to a wide range of policies.
JEL Classification: O32, O33
Suggested Citation: Suggested Citation