The Level and Growth Effects in the Empirics of Economic Growth : Some Results with Data from Guatemala

• Tác giả: B. Bhaskara Rao
• Ngôn ngữ: eng
• Ký hiệu phân loại: 338.9 Economic development and growth
• Thông tin xuất bản: 2012
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 301314
• Chủ đề: 1. Aggregate Human Capital E240; 2. Employment; 3. Intergenerational Income Distribution; 4. Unemployment; 5. Wages

Tóm tắt

Mankiw et al. (1992) have extended the Solow (1956) model by augmenting the production function with human capital. Its empirical success is impressive and it showed a procedure to improve the explanatory power of the neoclassical growth model. This article suggests an empirical procedure to further extend the neoclassical growth model to distinguish between the growth and level effects of shift variables like the human capital. We use time-series data from Guatemala to show that while the growth effects of education are small, they are significant and dominate the level effects.