Learning by Doing, Overinvestment and the “Erosion Effect” of R&D on Human Capital Accumulation
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| Title | Learning by Doing, Overinvestment and the “Erosion Effect” of R&D on Human Capital Accumulation
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| Author | Li Shangao and Chen Jiyong |
| Organization | Wuhan University |
| Email | cournotlee2006@yahoo.com.cn；cjyhubei@163.com |
| Key Words | Human capital; Technological Progress; “Erosion Effect”; Endogenous Growth |
| Abstract | There is an “erosion effect” of R&D on human capital accumulation. This paper develops an economic growth model with endogenous technological progress and human capital accumulation to characterize the “erosion effect” which implies a negative externality of R&D in human capital accumulation. This paper solves the steady-state economic growth rate in decentralized economy and centralized economy separately, and draws a conclusion that monopoly markup, negative effect of learning by doing, “erosion effect” and overinvestment of physical capital and human capital would decrease human capital accumulation rate and economic growth rate. |
| Serial Number | WP30 |
| Time | 2011-01-06 |
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