| Abstract: | Lucas (1988) modelled the productivity of workers as being a function not only of their own human capital but the human capital of the people with whom they work. Using individual data, this paper investigates whether there are such human‐capital externalities. In particular, we look at the research output of academic economists, and ask whether research‐output productivity is affected not just by individual human‐capital factors, and institutional and funding factors, but additionally by productivity of those in the same academic department. Our findings are also of relevance to the literature on peer‐group effects and the ‘Bell Curve’ debate. |
