Phases of Economic Development and the Transitional Dynamics of an Innovation-Education Growth Model
Author | : Maurizio Iacopetta |
Publisher | : |
Total Pages | : |
Release | : 2014 |
ISBN-10 | : OCLC:1308762613 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Phases of Economic Development and the Transitional Dynamics of an Innovation-Education Growth Model written by Maurizio Iacopetta and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper extends earlier analysis of the transitional dynamics of a growth model in which both human capital and innovation drive income expansion. Funke and Strulik [2000]. On endogenous growth with physical capital, human capital and product variety. European Economic Review 44 [491-515] suggest that the typical advanced economy follows three development phases, characterized in a temporal order by physical capital accumulation, human capital formation, and innovation, and that the transitional dynamics of the model reproduce such a sequencing. I argue that other sequences of the phases of development are possible and show that the model can generate a trajectory in which innovation precedes human capital formation. This trajectory accords with the observation that the rise in formal education followed with a considerable lag the process of industrialization. U.S. income and educational time series data are used to corroborate the innovation-education trajectory.