Endogenous Human Capital and Technological Change in Closed and Open Economies |
Common terms and phrases
absorption cost absorption effect accumulate human capital autarky bond market Ceteris paribus change and growth comparative advantage conditional convergence convergence cost of human decreases dynamic gains economic growth Eicher endogenous technological change equation export externality factor endowments Grossman and Helpman High Tech sector higher investment higher rate higher relative wage human capital accumulation human capital investment implies incentives to invest interest rate international trade intertemporal invest in education investment in human Journal of Economics lifetime utility Low Tech sector open economy output overlapping generations model P₁ Pareto improvement period t+1 private incentives professors raises the relative rate of technological relative demand relative price relative supply relative wage Romer S₁ savings rate skill-biased labor demand skilled labor supply skilled workers social welfare function stock of students subsidy scheme supply of skilled tax and subsidy technological change U₁ university sector unskilled workers V₁ W₁ wage of skilled young agents