Education,Innovation and Long‐Run Growth |
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Authors: | Katsuhiko Hori Katsunori Yamada |
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Affiliation: | 1. Tezukayama University;2. Osaka University |
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Abstract: | We extend a second‐generation Schumpeterian growth model to incorporate human capital accumulation to clarify the general equilibrium effects of subsidy policies on human capital accumulation and R&D activities in a unified framework. Despite the conventional argument that subsidies always stimulate these growth‐promoting activities, we find that subsidies asymmetrically affect human capital accumulation and R&D activities. Our theoretical results suggest that research using standard models of human capital might find false negative relationships between education subsidies and economic growth. |
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Keywords: | O15 O32 O41 |
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