A Nonscale Growth Model with R&D and Human Capital Accumulation.

Abstract

This paper aims to contribute to the new growth theory with a model in which the engine of growth is human capital growth. Building on Romer's [1990] model, two new functions are introduced: (1) a specification for the production of new designs that assumes no externalities and no inventions before time zero; and (2) A specification for the accumulation of human capital technically similar to that in Lucas [1988].RESEARCH AND DEVELOPMENT ; HUMAN CAPITAL ; GROWTH RATE