高宏Chapter3B概论.ppt

Chapter 3 New Growth Theory Part B Cross-Country Income Differences 周泳宏 So far, our conclusions are Differences in capital do not account for the income differences across countries Since technology is nonrival, differences in technology are unlikely to be important to cross-country income differences In this part, we attempts to move beyond these conclusions Physical capital is not the only type of capital, and we need to consider human capital as well The allocation of resources between activities that raise overall output and ones that redistribute it A model of this division of resources between production and rent-seeking 3.8 Extending the Solow Model to Include Human Capital Define → prove it GBP Implications of this model It identifies an additional potential source of the cross-country income differences: human capital The existence of human capital does not change the Solow model’s implications about the effects of physical capital accumulation An increase in years of education k* y* are unchanged The rise in E increases output per worker on the BGP by the same proportion that it increases G(E) Students and Workers Individual has fixes lifespan, T Individuals spend the first E years of life in school and the remaining T-E years working A rise in E can either raise or lower output per person in the long run → prove Suppose , the golden-rule level of education is Problem ☆ A model of human capital and growth Let →Analyse the dynamic of the economy The dynamic of the economy An increase in sK Problem Answer BGP a permanent increase in s 3.9 Empirical Application:Accounting for Cross-Country Income Differences An essential step in understanding income differences among countries is to determine to what extent they are due to differences in Physical-capital accumulation Human-capital accumulation Other factors 3.10 Social Infrastructure Social Infrastructure Hall and Jones: Institutions