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Public Knowledge, Individual Human Capital, and Private Wealth in a Generalized Dynamic Walrasian General Equilibrium Theory

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  • Wei-Bin Zhang

    (Ritsumeikan Asia Pacific University, Japan)

Abstract

This study is concerned with dynamics of a generalized Walrasian equilibrium theory with endogenous public knowledge, individual human capital, and private wealth. The model is a synthesis of a few well-established economic theories with Zhang’s approach to modeling human behavior. It integrates the basic models in Walrasian general equilibrium theory, neoclassical growth theory, growth theory with endogenous human capital, and growth theory with endogenous knowledge. We build a model with J -group of households and three sectors. To describe motion of the economy is to solve 2 J + 1 differential equations. We examine dynamic properties of the model of a 3-group economy with simulation. Comparative dynamic analysis is conducted to reveal transitory and long-term effects of some endogenous changes in policies, preferences, and efficiency of utilizing knowledge or human capital.

Suggested Citation

  • Wei-Bin Zhang, 2018. "Public Knowledge, Individual Human Capital, and Private Wealth in a Generalized Dynamic Walrasian General Equilibrium Theory," Social-Economic Debates, Association for Entreprenorial Spirit Promotion, vol. 7(1), pages 74-99, April.
    • Handle: RePEc:sdb:social:v:7:y:2018:i:1:p:74-99
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    More about this item

    Keywords

    Growth; propensity to receive education; propensity to save; creativity; research policy; income and wealth distribution;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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