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Learning-by-doing in Two Sectors, Production Structure, Leisure and Optimal Endogenous Growth

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  • Matthias Göcke

    (University of Giessen)

Abstract

A model with two different production sectors and endogenous growth based on the accumulation of sector-specific human capital due to learning-by-doing is presented. Accumulation of experience is measured by means of sectoral production output aggregated over time. Growth is controlled by a dynamic optimisation of the use of time for working in the different sectors or for leisure. Transitional dynamics of production growth, especially of structural change towards a 'new' sector (with relatively scarce experience), of the optimal sectoral distribution of working time and of leisure as well as the corresponding steady state levels are derived and a numerical simulation is performed.

Suggested Citation

  • Matthias Göcke, 2011. "Learning-by-doing in Two Sectors, Production Structure, Leisure and Optimal Endogenous Growth," MAGKS Papers on Economics 201111, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201111
    as

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    File URL: https://www.uni-marburg.de/en/fb02/research-groups/economics/macroeconomics/research/magks-joint-discussion-papers-in-economics/papers/2011-papers/11-2011_goecke.pdf
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    References listed on IDEAS

    as
    1. Gocke, Matthias, 2002. "Leisure versus learning-by-doing -- saturation effects and utility-side limits to endogenous growth," Economic Modelling, Elsevier, vol. 19(4), pages 585-609, August.
    2. de Hek, Paul A., 1998. "An aggregative model of capital accumulation with leisure-dependent utility," Journal of Economic Dynamics and Control, Elsevier, vol. 23(2), pages 255-276, September.
    3. Matthias Göcke, 2010. "A One-Sector Model with Learning-by-doing, Investment, Leisure, and Optimal Growth," MAGKS Papers on Economics 201036, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    4. Matthias Göcke, 2004. "Learning-by-doing versus Schooling in a Model of Endogenous Growth," Journal of Economics, Springer, vol. 83(1), pages 47-69, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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