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Human capital and the ambiguity of the Mankiw-Romer-Weil model

preprint
posted on 02.08.2005 by Huw Edwards
Mankiw, Romer and Weil's (1992) finding of a cross-country relationship between savings rates, school enrolment and income levels is highly ambiguous.Their interpretation that it is consistent with an augmented Solow model depends on the implausible assumption that educational productivity is vastly higher in advanced countries than poor ones. On the alternative assumption of consistent educational productivity, their model is very close to an AK-type, but with rising educational costs producing a degree of conditional convergence.

History

School

  • Business and Economics

Department

  • Economics

Pages

101013 bytes

Publication date

2004-12

Notes

Economics Research Paper, no. 04-22

Language

en

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