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Capital deepening

About: Capital deepening is a research topic. Over the lifetime, 5203 publications have been published within this topic receiving 230297 citations.


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TL;DR: In this article, the determinants of income distribution and growth in an overlapping generations economy with heterogenous households were studied, and the authors explored the effects of technological change in human capital formation, upon the distribution of income at each date along the equilibrium path.
Abstract: textThe paper studies the determinants of income distribution and growth in an overlapping generations economy with heterogenous households. Our framework has the following main features: heterogeneity of consumers with respect to wealth and parental human capital; intergenerational transfers, accomplished via investment in the education of the younger generation. Heterogeneity in income results from the distribution of human capital across individuals in a non-degenerate way. The human capital production is affected by 'home-education' , provided by the parents, as well as 'public-education , which is provided equally to all young individuals of the same generation. Due to investments in human capital our economy exhibits endogenous growth. First, we explore the effects of technological change in human capital formation, upon the distribution of income at each date along the equilibrium path. Second, we study the impact of such technogical progress on growth and relate these results to the income distribution inequality. Third, we provide numerical simulations to quantify the effect of changes in the parameters of the model. Simulation results include exact Gini coefficients and tax rate on labor determined endogenously through majority voting.

50 citations

Posted Content
01 Jan 2011
TL;DR: In this paper, a health adjusted education indicator for human capital is used in the standard CobbDouglas production function to confirm the long run positive relationship between human capital and economic growth in Pakistan.
Abstract: Human capital is generally considered as a positive contributor in the economic growth. In this study, we estimate this relationship using time series data of Pakistan for the period 1978 to 2007. A health adjusted education indicator for human capital is used in the standard CobbDouglas production function confirms the long run positive relationship between human capital and economic growth in Pakistan. Sensitivity analysis was also performed in order to check the robustness of the initial findings. The estimation results supported the findings of the previous studies that human capital is positively related to growth and also that the results are robust. The health adjusted education indicator was found to be a highly significant determinant of economic growth, which indicates that both the health and education sectors should be given special attention in order to ensure long run economic growth.

49 citations

01 Jan 2009
TL;DR: The authors examined the causal relationship between foreign mergers and acquisitions and firm productivity in the UK over the period 1999-2007 and found significant heterogeneity in the TFP effects of foreign M&A at the industry level.
Abstract: This paper examines the causal relationship between foreign mergers and acquisitions and firm productivity in the UK over the period 1999-2007. Our results raise questions about the existence of aggregate effects of foreign ownership on TFP in the longer-run. However, we find significant heterogeneity in the TFP effects of foreign M&A at the industry level. Overall, we uncover a systematic pattern of post-acquisition TFP effects that is consistent with the most recent theoretical models of firm heterogeneity and cross-border mergers and acquisitions as mode of foreign entry. Furthermore, we find positive aggregate effects on labor productivity due to capital deepening but not due to changes in TFP.

49 citations

Journal ArticleDOI
TL;DR: The authors empirically investigates the theoretical predictions of some of the channels through which human capital inequality may discourage investment and growth, and finds that, all other things being equal, a greater degree of human capital inequalities increases fertility rates and reduces life expectancy, which in turn hampers the accumulation rates of the human capital.
Abstract: This paper empirically investigates the theoretical predictions of some of the channels through which human capital inequality may discourage investment and growth. In a cross section of countries over the period 1960–2000, findings reveal that, all other things being equal, a greater degree of human capital inequality increases fertility rates and reduces life expectancy, which in turn hampers the accumulation rates of human capital. This effect is reinforced in the countries where individuals find it difficult to access credit. Extensive sensitivity analyses show that the results are robust across specifications and are not driven by atypical observations, endogenous regressors, or unobservable heterogeneity.

49 citations

Book ChapterDOI
TL;DR: The public capital hypothesis as mentioned in this paper posits that public infrastructured directly and indirectly affects the productivity of the private economy in a positive way, and that public services produced with the stock of infrastructure capital enter as intermediate services the private production processes.
Abstract: Recently, both in the literature as well as in public discussion it is argued that the neglect of the public infrastructure capital stock might be responsible for the generally observed productivity slowdown of the U.S economy (see Tatom (1991) for a short summary of the delete).This hypothesis, which has been labeled the “public capital hypothesis”, posits that public infrastructured directly and indirectly affects the productivity of the private economy in a positive way. Directly, “public” services produced with the stock of infrastructure capital enter as intermediate services the private production processes. Indirect effects the arise because private and public capital are considered to be complementary, that is, public capital raises the productivity of private capital. Aschauer (1989) for the U.S. and Berndt and Hansson (1991) for Sweden provide empirical evidence in favour of this hypothesis. The fundamental idea of the “public capital hypothesis”, namely the inter-relationship of productivity in the private economy and the provision of public infrastructure, is not that new. This aspect has been examined both theoretically and empirically in the urban economics literature in the past (see for example, Costa, Ellson and Martin, (1987), and Segal, (1976)).In addition, Diewert (1986) presented an intensive theoretical examination of the benefits of public investment as an explanation for the slowdown of productivity observed throughout most industrialized countries.

49 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
202326
202242
202126
202031
201932
201848