Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/130399 
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper No. 5774
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Evidence for the United States suggests balanced growth despite falling investment-good prices and less than unitary elasticity of substitution between capital and labor. This is inconsistent with the Uzawa Growth Theorem. We extend Uzawa.s theorem to show that introducing human capital accumulation in the standard way does not resolve the puzzle. However, balanced growth is possible if education is endogenous and capital is more complementary with schooling than with raw labor. We describe balanced growth paths for several neoclassical growth models with capital-augmenting technological progress and endogenous schooling. The balanced growth path in an overlapping-generations model in which individuals choose their time in school matches key features of the U.S. record.
Subjects: 
neoclassical growth
balanced growth
technological progress
capital-skill complementarity
JEL: 
O41
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.