Should a country invest more in human or physical capital? - Aix-Marseille Université Access content directly
Journal Articles Mathematical Social Sciences Year : 2015

Should a country invest more in human or physical capital?

Abstract

Should a country invest more in human or physical capital? Using a two-sector overlapping generations setting with endogenous growth driven by human capital accumulation, we prove that relative factor intensity between sectors drastically shapes the welfare analysis: two identical laissez-faire economies with different sectoral capital shares may generate physical capital excess or scarcity, with respect to the optimum. The design of optimal policy depends on the sectoral properties and the social planner discount rate.

Keywords

No file

Dates and versions

hal-01457381 , version 1 (06-02-2017)

Identifiers

Cite

Marion Davin, Karine Gente, Carine Nourry. Should a country invest more in human or physical capital?. Mathematical Social Sciences, 2015, 76 (C), pp.44--52. ⟨10.1016/j.mathsocsci.2015.04.003⟩. ⟨hal-01457381⟩
54 View
0 Download

Altmetric

Share

Gmail Facebook X LinkedIn More