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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TL;DR: In this article, the authors explore relationships between industry performance measures and investments in high-tech office and information technology capital for two-digit manufacturing industries from 1968 through 1986, and find limited evidence of a positive relationship between profitability and the share of hightech capital in the total physical capital stock.
333 citations
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TL;DR: A review of the measures of the stock of human capital used in empirical growth research as discussed by the authors reveals that human capital is mostly poorly proxied, and the simple use of the most common proxy, average years of schooling, misspecifies therelationship between education and human capital.
Abstract: A review of the measures of the stock of human capital used in empiricalgrowth research - including adult literacy rates, school enrollmentratios, and average years of schooling of the working-age population -reveals that human capital is mostly poorly proxied. The simple use ofthe most common proxy, average years of schooling, misspecifies therelationship between education and the stock of human capital. Based onhuman capital theory, the specification of human capital is extended toallow for decreasing returns to education and for differences in thequality of a year of education. The different specifications give riseto hugely differing measures of the stock of human capital acrosscountries, and development-accounting results show that misspecifiedhuman capital measures can lead to severe underestimation of thedevelopment effect of human capital.
333 citations
TL;DR: In this paper, an open-economy model of intertemporal trade under asymmetric information is developed and applied to a number of policy issues including the debt-overhang problem, the indexation of foreign public debts, and the effect of income distribution on growth.
329 citations
TL;DR: In this article, an endogeneous growth model is developed that produces convergence in per capita income and growth rates of output, and explains income convergence of the developed world, regional income convergence within the United States, and intergenerational mobility.
Abstract: An endogeneous growth model is developed that produces convergence in per capita income and growth rates of output. Agents have identical preferences and access to identical technologies of production and investment, but differing levels of initial human capital. A spillover effect of human capital in the investment technology provides below-average human capital agents with a higher rate of return on investment than above-average human capital agents. Thus below-average human capital agents grow faster than above-average human capital agents. This model explains income convergence of the developed world, regional income convergence within the United States, and intergenerational mobility.
327 citations
Posted Content•
TL;DR: In this article, the authors delineate the mechanisms that link social capital and economic development and show that social capital can produce two kinds of trust, both of which can reduce transaction costs.
Abstract: This paper attempts to delineate the mechanisms that link social capital and economic development. I show that social capital can produce two kinds of trust, both of which can reduce transaction costs. It is important to keep these two sources of trust apart, since development policies utilizing social capital have different impacts, depending on the basis of trust.
323 citations