In this paper, the concept of social capital is introduced and illustrated, its forms are described, the social structural conditions under which it arises are examined, and it is used in an analys...

/pdf/social-capital-in-the-creation-of-human-capital-1836wo2872.pdf

Social Capital in the Creation of Human Capital

This paper examines whether the Solow growth model is consistent with the international variation in the standard of living. It shows that an augmented Solow model that includes accumulation of human as well as physical capital provides an excellent description of the cross-country data. The paper also examines the implications of the Solow model for convergence in standards of living, that is, for whether poor countries tend to grow faster than rich countries. The evidence indicates that, holding population growth and capital accumulation constant, countries converge at about the rate the augmented Solow model predicts. This paper takes Robert Solow seriously. In his classic 1956 article Solow proposed that we begin the study of economic growth by assuming a standard neoclassical production function with decreasing returns to capital. Taking the rates of saving and population growth as exogenous, he showed that these two vari- ables determine the steady-state level of income per capita. Be- cause saving and population growth rates vary across countries, different countries reach different steady states. Solow's model gives simple testable predictions about how these variables influ- ence the steady-state level of income. The higher the rate of saving, the richer the country. The higher the rate of population growth, the poorer the country. This paper argues that the predictions of the Solow model are, to a first approximation, consistent with the evidence. Examining recently available data for a large set of countries, we find that saving and population growth affect income in the directions that Solow predicted. Moreover, more than half of the cross-country variation in income per capita can be explained by these two variables alone. Yet all is not right for the Solow model. Although the model correctly predicts the directions of the effects of saving and

/pdf/a-contribution-to-the-empirics-of-economic-growth-27cl5gkqam.pdf

A Contribution to the Empirics of Economic Growth

Large sample properties of generalized method of moments estimators

Growth in this model is driven by technological change that arises from intentional investment decisions made by profit-maximizing agents. The distinguishing feature of the technology as an input is that it is neither a conventional good nor a public good; it is a nonrival, partially excludable good. Because of the nonconvexity introduced by a nonrival good, price-taking competition cannot be supported. Instead, the equilibrium is one with monopolistic competition. The main conclusions are that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.

/pdf/endogenous-technological-change-4yzdlw043b.pdf

Endogenous Technological Change

Growth in this model is driven by technological change that arises from intentional investment decisions made by profit maximizing agents. The distinguishing feature of the technology as an input is that it is neither a conventional good nor a public good; it is a nonrival, partially excludable good. Because of the nonconvexity introduced by a nonrival good, price-taking competition cannot be supported, and instead, the equilibriumis one with monopolistic competition. The main conclusions are that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.

https://papers.ssrn.com/sol3/Delivery.cfm/nber_w3210.pdf?abstractid=226703&mirid=1

Managing migration has become a priority for policy makers both in developed
and developing countries; it is a difficult challenge indeed. Large immigration or
emigration flows relative to domestic population’s impact on almost all aspects of
an economy and society: family structures, community life, educational and health
systems, labour markets, security systems, governance and institutions. Despite
the inherent difficulties in policy making, there is a growing awareness that if
management can be improved, important gains for both migrant-receiving (“host”)
and migrant-sending (“home”) countries may be generated. Effective management
can furthermore mitigate the risks associated with migration....

/pdf/policies-for-migration-and-development-ras34n2fdp.pdf

Policies for Migration and Development

This paper is a study of the dynamics of the efficient distribution of consumption in an exchange economy with many consumers, each of whom is subject to private, idiosyncratic taste shocks. We propose a recursive method for finding feasible allocations that are incentivecompatible and that are Pareto optimal within this set. The method is applied to several parametric examples. We find that in an efficient allocation the degree of inequality continually increases, with a diminishing fraction of the population receiving an increasing fraction of the resources. We discuss the extent to which these allocations can be decentralized via market arrangements. (This abstract was borrowed from another version of this item.)

On Efficient Distribution with Private Information

Public sector involvement extends to a wide range of activities in Malaysia, including not only public service but also the public enterprises. The latter include the non-financial public enterprises (NFPE) involved in manufacturing and other industries, as well as public sector shares in banks and other financial institutions. The public service itself comprises five main branches, which fall into two main groups: 


Civilian Public Services (CPS) 


The Federal Civil Service (FCS)


Federal Statutory Bodies (FSB)


State Civil Service and Local Authority (SCS & LA)


State Statutory Bodies (SSB)






Security Public Services 


The armed forces and police

The Public Sector

In this issue, geography, market integration and institutions are identified as the fundamental constraints on Africa's future prosperity. It is pointed out that, in line with the recommendations of The Report of the Commission for Africa, African governments and international partners can ameliorate the effects of these constraints through: investing in governance, peace and security; improving the investment climate by articulating and implementing suitable policies; improving the infrastructure; diversifying the economic base; and removing trade and non-trade barriers to intra-African trade as well as Africa's beneficial integration into the global economy. Also in this issue, the point is made that the widening gaps between Africa's economies and those of the industrialized nations contribute to the high levels of migration from Africa to the developed world. It is concluded that the developed nations need to support Africa's resurgence in order to reduce the poverty levels and improve economic growth prospects in Africa thereby reduce the pressure on the developed countries to control the influx of (unwanted) low skilled Africans to their countries, save them the cost and consequences of preventing the surge, and ameliorate other negative externalities associated with such migrants. Supporting Africa's resurgence will ensure that Africa does not lag behind yielding the associated benefit of reduced pressure for skilled and unskilled persons to migrate out of Africa and avoidance of perverse spatial distribution of people; the consequences of which can only be imagined.

Robert E. Lucas

Papers

Policies for Migration and Development

On Efficient Distribution with Private Information

The Public Sector

Africa's Resurgence and International Migration: An Overview

The Impact of Structural Adjustment on Training Needs