Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108238
Authors: 
Dang, Jing
Gillman, Max
Kejak, Michal
Year of Publication: 
2011
Series/Report no.: 
IEHAS Discussion Papers MT-DP - 2011/28
Abstract: 
An identical two-sector productivity shock causes Rybczynski (1955) and Stolper and Samuelson (1941) effects that release leisure time and initially raise the relative price of human capital investment so as to favor it over goods production. Modified by having the household sector produce human capital investment sector, the RBC model follows the international approach of Maffezzoli (2000) and so adds a second sector relative to Jones et al. (2005). This captures key major US RBC data: output growth persistence, with hump-shaped impulse responses; hump-shaped physical capital investment impulse responses; Gali's (1999) negative impulse response of labour supply; and hours volatility.
Subjects: 
real business cycle
human capital
endogenous growth
JEL: 
E24
E32
O41
ISBN: 
978-615-5024-65-8
Document Type: 
Working Paper

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