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A Note on the Inclusion of Human Capital in the Lucas Model

Author

Listed:
  • Bidisha Chakraborty

    (Vijaygarh Jotish Ray College, India and Economic Research Unit, Indian Statistical Institute, India)

  • Manash Ranjan Gupta

    (Economic Research Unit, Indian Statistical Institute, India)

Abstract

We include human capital in the utility function in an otherwise standard Lucas (1988) model of endogenous growth and show that there may be multiple steady-state equilibria. We also analyze the transitional dynamic properties of this model.

Suggested Citation

  • Bidisha Chakraborty & Manash Ranjan Gupta, 2006. "A Note on the Inclusion of Human Capital in the Lucas Model," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 5(3), pages 211-224, December.
    • Handle: RePEc:ijb:journl:v:5:y:2006:i:3:p:211-224
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    References listed on IDEAS

    as
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    10. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-834, August.
    11. Ben-Gad, Michael, 2003. "Fiscal policy and indeterminacy in models of endogenous growth," Journal of Economic Theory, Elsevier, vol. 108(2), pages 322-344, February.
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    Cited by:

    1. Stefano Bosi & Carmen Camacho & David Desmarchelier, 2020. "Human capital and welfare," Working Papers halshs-02482543, HAL.
    2. Stefano Bosi & Carmen Camacho & David Desmarchelier, 2023. "Human capital and welfare," Post-Print halshs-03920429, HAL.
    3. Stefano Bosi & Carmen Camacho & David Desmarchelier, 2020. "Human capital and welfare," PSE Working Papers halshs-02482543, HAL.

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    More about this item

    Keywords

    human capital; endogenous growth; multiple steady-state equilibria; saddle path;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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