ECONOMIC GROWTH WITH LIMITED AGGLOMERATION ECONOMIES

This study examined how various inputs including employment agglomeration in different industries affected economic growth of Arkansas during 1986-1999. Analysis showed locations that are able to successfully substitute infrastructure, human capital, and amenities, are more likely to see increased incomes.employment agglomeration, input potentials, input utilization, personal income, Community/Rural/Urban Development, Labor and Human Capital,

Human capital externalities, trade, and economic growth

Human capital, because of its special role in innovative activity and technological progress, has formed the bedrock of the new theories of endogenous growth. Human capital, however, not only serves as an engine of growth, but also as a productive input along with labor and physical capital. In this study, we distinguish between these two roles of human capital and find evidence of the importance of both. We also find that the relationship between growth and the external effects of human capital vary according to trade regime. When literacy rates are relatively high, open economies grow about 0.65 to 1.75 percentage points more than closed economies. Replaced by "Human capital, trade and economic growth"Economic development ; Human capital

Output Growth Decomposition in the Presence of Input Quality Effects: A Stochastic Frontier Approach

How do physical capital accumulation and total factor productivity (TFP) individually add to economic growth? We approach this question from the perspective of the quality of physical capital and labor, namely the age of physical capital and human capital. We build a unique dataset by explicitly calculating the age of physical capital for each country and each year of our time frame and estimate a stochastic frontier production function incorporating input quality in five regions of countries (Africa, East Asia, Latin America, South Asia and West). Physical capital accumulation generally proves much more important than either the improved quality of factors or TFP growth in explaining output growth. The age of capital decreases growth in all regions except in Africa, while human capital increases growth in all regions except in East Asia

Capital Augmenting and Labor Augmenting Approach in Measuring Contribution of Human Capital and Education to Economic Growth

In this paper an effort has been made to unveil some hidden and implicit assumptions that has been used in different models dealing with analysis and measurement of contribution of human capital to economic growth. In order to do it we started from the general production function with heterogeneous labor input and general production function with heterogeneous human and physical capital. By introducing different assumptions regarding the partial elasticity of substitution between different factors of production we derived different models for human capital contribution. Apart from making hidden assumptions of existing models explicit we also derived several others models that can be used for the same purposes.Economic Growth, Growth Accounting, Human Capital, Capital of Education, Partial Elasticity of Sustitution

Differential migration prospects, skill formation, and welfare

This paper develops a one sector, two-input model with endogenous human capital formation. The two inputs are two types of skilled labor: engineering, which exerts a positive externality on total factor productivity, and law, which does not. The paper shows that a marginal prospect of migration by engineers increases human capital accumulation of both types of workers (engineers and lawyers), and also the number of engineers who remain in the country. These two effects are socially desirable, since they move the economy from the(inefficient) free-market equilibrium towards the social optimum. The paper also shows that if the externality effect of engineering is sufficiently powerful, everyone will be better off as a consequence of the said prospect of migration, including the engineers who lose the migration lottery, and even the individuals who practice law. --heterogeneous human capital,differential externality effects,migration of educated workers,human capital formation,efficient acquisition of human capital,beneficial brain drain

Corruption and economic growth in Lebanon

This paper seeks to examine the impact of corruption on economic growth in Lebanon. Using a neoclassical model, we hypothesise that corruption reduces the country's standard of living as measured by real per capita GDP. We show that corruption deters growth indirectly through reducing the factor input productivity in a Cobb-Douglas production function. We provide empirical evidence suggesting that corruption increases inefficiencies in government expenditure and reduces investment and human capital productivity, leading to a negative impact on output. The implications of the analysis are explored.corruption, economic growth, investment, human capital, government expenditure, foreign aid, Institutional and Behavioral Economics, Labor and Human Capital, Public Economics,

The Effect of Increased Energy Prices on Agriculture: A Differential Supply Approach

The increase in energy prices between 2004 and 2007 has several potential consequences for aggregate agriculture in the U.S. We estimate the derived input demand elasticities for energy as well as capital, labor, and materials using the differential supply formulation. Given that the derived input demand for energy is inelastic, it is more price-responsive than the other inputs. The results also indicate that the U.S. aggregate agricultural supply function is responsive to energy prices.differential input demand, concavity constrained, energy, Agribusiness, Agricultural Finance, Demand and Price Analysis, Financial Economics, Industrial Organization, Labor and Human Capital, Land Economics/Use, Marketing, Production Economics, Productivity Analysis, Research Methods/ Statistical Methods, C30, Q11, Q42,

The impact of human capital on firm-level input use: Argentine agriculture

This paper attempts to understand the linkages between human capital and input choice in agricultural firms. The hypothesis to be tested is that better educated managers choose different input combinations than managers with a lower educational level. In particular, the hypothesis is that the ratio between non-land and land input increases as education increases. Non-land inputs include fertilizers, machinery services, herbicides, animal stocks and others. An increase in the non-land/land input ratio results in increased output (and costs) per unit of land. Given the fixity of land at the aggregate level, the non-land/land input ratio is an important determinant of total sector output. Este trabajo tiene como objetivo entender los vínculos que existen entre capital humano y uso de insumos en empresas agropecuarias. La hipótesis a ser sometida a prueba es que los productores con mayor nivel de educación eligen combinaciones de insumos distintas que las elegidas por aquellos que cuentan con un nivel de educación mas bajo. En particular, que el ratio entre insumos de capital y el insumo tierra aumenta a medida que la educación de los productores aumenta. Los insumos de capital incluyen fertilizantes, servicios de maquinaria, herbicidas, capital biológico (animales) y otros. Un aumento en el ratio entre insumos de capital por unidad de recurso tierra resulta en mayor producto (y costos) por unidad de tierra. Dado que a nivel agregado la tierra es un insumo fijo, el ratio entre capital y tierra es un importante determinante de la producción total lograda. El nivel educativo de los productores, al impactar sobre la intensidad de uso de la tierra, resulta entonces un importante determinante del nivel total de producción logrado.human capital, agriculture, input use

Human Capital Prices, Productivity and Growth

Separate identification of the price and quantity of human capital has important implications for understanding key issues in economics. Price and quantity series are derived for four education levels. The price series are highly correlated and they exhibit a strong secular trend. Three resulting implications are explored: the rising college premium is found to be driven more by relative quantity than relative price changes, life-cycle wage profiles are readily interpretable as reflecting optimal human capital investment paths using the estimated price series, and adjusting the labor input for quality increases dramatically reduces the contribution of MFP to growth.Human Capital, Productivity and Growth

Natural Disasters in a Two-Sector Model of Endogenous Growth

This paper studies sustainability of economic growth considering the risk of natural disasters caused by pollution in an endogenous growth model with physical and human capital accumulation. We consider an environmental tax policy, and show that economic growth is sustainable only if the tax rate on the polluting input is increased over time and that the long-term rate of economic growth follows an inverted V-shaped curve relative to the growth rate of the environmental tax. The social welfare is maximized under a positive steadystate growth in which faster accumulation of human capital compensates the productivity loss due to declining use of the polluting input.natural disasters, human capital, endogenous depreciation, economic growth.