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Title:On the role of productive government spendings for convergence of a growing economy with heterogenous specialists PDF Logo
Authors:Soretz, Susanne
Ott, Ingrid
Issue Date:2010
Series/Report no.:Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Innovation and Productivity E16-V3
Abstract:This paper employs a dynamic framework to compare the effects of alternative governmental activities on the process of convergence. Policy instruments include facilitating private investment and public expenditure (amount and structure) that act as enhancing individual skills. Highly skilled specialists are endowed with both technological and systemic skills, though to different extents. We analyze how governmental activity speeds up convergence thereby considering productivity growth at the technology frontier either as exogenous or as endogenous parameter. Which policy maximizes the speed of convergence is crucially affected by a country's state of development. A policy switch while catching-up may be preferable.
Subjects:productive governmental activities
technology frontier
convergence policies
higly-skilled specialists
technological skills
systemic skills
JEL:O31
O33
J24
Document Type:Conference Paper
Appears in Collections:Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie

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