Topic
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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01 Jan 1989
TL;DR: In this paper, the authors present a formal life-cycle model of female labor supply in which a woman alters her human capital decision-making in accordance with the expected changes in marital status and family life.
Abstract: This paper presents a formal life-cycle model of female labor supply in which a woman alters her human capital decision-making in accordance with the expected changes in marital status and family life. Within such a model observed state dependence is considered a result from either heterogeneity in human capital and child service stock (i.e. permanent income and wages) or from constraints on a womans decision-making (i.e. bang-bang controls). This dynamic life-cycle model allows a woman to allocate time among work children and general or specific human capital accumulation. The latter allocation makes the permanent wage an endogenous decision. Results of the model showed that without continuous decision-making options a woman might be forced to choose a suboptimal time allocation path and exhibit state dependence in participation. Likewise a womans stock of human capital and non-market income play a key role in her participation decision and also implicitly create state dependence in participation. The model specifically identifies the direct relationship between children and general human capital accumulation.
44 citations
TL;DR: In this paper, the authors analyzed the link between income growth and private capital inflows and found that bank flows stand as the sole source of foreign financing that displays a positive and robust correlation with growth.
44 citations
TL;DR: In this article, the authors argue that the governance function has more impact on the efficiency with which resources are utilized within the firm, and that the measures of governance are also positively correlated with productivity improvements and growth in real output.
Abstract: Capital markets perform two distinct functions: provision of capital and facilitation of good governance through information production and monitoring. I argue that the governance function has more impact on the efficiency with which resources are utilized within the firm. Based on industry-level data across 38 countries, I present evidence suggesting a positive relation between market-based governance and improvements in industry efficiency. The measures of governance are also positively correlated with productivity improvements and growth in real output. Furthermore, while governance affects efficiency, the capital provision services induce technological change. The evidence underscores the role of capital markets as a conduit of socially valuable governance services as distinct from capital provision.
43 citations
TL;DR: In the year that capital-poor countries open their stock markets to foreign investors, the growth rate of their typical firm's capital stock exceeds its pre-liberalization mean by 4.1 percentage points.
Abstract: In the year that capital-poor countries open their stock markets to foreign investors, the growth rate of their typical firm's capital stock exceeds its pre-liberalization mean by 4.1 percentage points. In each of the next three years the average growth rate of the capital stock for the 369 firms in the sample exceeds its pre-liberalization mean by 6.1 percentage points. However, there is no evidence that differences in the liberalization-induced changes in the cost of capital or investment opportunities drive the cross-sectional variation in the post-liberalization investment increases.
43 citations
TL;DR: In this article, the authors hypothesize that some conditions must obtain before educational expansion can have an affect on economic growth, and they compare the French findings to the U.S. findings and find them consistent.
Abstract: Human capital theory postulates that school expansion should foster economic growth, but credentialing theory questions such a relationship. We hypothesize that some conditions must obtain before educational expansion can have an affect on economic growth. First, the curriculum must be standardized and a large proportion of the age cohort beyond grade six must be enrolled for a sufficient period of time. Second, education and the economy must be linked. Third, the state must ensure that the quality of educational offerings is maintained. We use France to test these hypotheses because, starting in the late 19th century, the state played an important role in linking education and the economy. The state also followed a number of specific policies to ensure quality. The analysis from 1825-1975 supports our hypotheses. We compare the French findings to the U.S. findings and find them consistent.
43 citations