Economic growth and economic development 6

Introduction to Modern Economic Growth
9.9. Taking Stock
9.10. References and Literature
9.11. Exercises

453
455
456

Chapter
10.1.
10.2.
10.3.
10.4.
10.5.
10.6.
10.7.
10.8.
10.9.
10.10.
10.11.

10. Human Capital and Economic Growth
463
A Simple Separation Theorem
463
Schooling Investments and Returns to Education
466
The Ben Porath Model
469
Neoclassical Growth with Physical and Human Capital

474
Capital-Skill Complementarity in an Overlapping Generations Model 480
Physical and Human Capital with Imperfect Labor Markets
485
Human Capital Externalities
492
Nelson-Phelps Model of Human Capital
495
Taking Stock
498
References and Literature
500
Exercises
502

Chapter
11.1.
11.2.
11.3.
11.4.
11.5.
11.6.
11.7.

11. First-Generation Models of Endogenous Growth
The AK Model Revisited
The AK Model with Physical and Human Capital
The Two-Sector AK Model
Growth with Externalities
Taking Stock

References and Literature
Exercises

Part 4.

Endogenous Technological Change

505
506
513
516
521
526
528
529
535

Chapter
12.1.
12.2.
12.3.
12.4.
12.5.
12.6.
12.7.
12.8.

12. Modeling Technological Change
Different Conceptions of Technology
Science, Profits and the Market Size

The Value of Innovation in Partial Equilibrium
The Dixit-Stiglitz Model and “Aggregate Demand Externalities”
Individual R&D Uncertainty and the Stock Market
Taking Stock
References and Literature
Exercises

537
537
542
545
555
562
564
565
567

Chapter
13.1.
13.2.
13.3.
13.4.

13. Expanding Variety Models
The Lab Equipment Model of Growth with Product Varieties
Growth with Knowledge Spillovers
Growth without Scale Effects
Growth with Expanding Product Varieties
vi

571
572
586
589
593