Human capital, basic research, and applied research: Three dimensions of human knowledge and their differential growth effects

Arbeitspapier

We analyze the differential growth effects of basic research, applied research, and embodied human capital accumulation in an R&D-based growth model with endogenous fertility and endogenous education. In line with the empirical evidence, our model allows for i) a negative association between long-run economic growth and population growth, ii) a positive association between long-run economic growth and education, and iii) a positive association between the level of per capita GDP and expenditures for basic research. Our results also indicate that raising public investments in basic research reduces the growth rate of GDP in the short run because resources have to be drawn away from other productive sectors of the economy. These short-run costs of basic research might be an explanation for the reluctance of governments to increase public R&D expenditures notwithstanding the long-run benefits of such a policy.

Objekt anzeigen

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: cege Discussion Papers ; No. 186

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Public Goods ; Demographic Trends, Macroeconomic Effects, and Forecasts ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Management of Technological Innovation and R&D ; One, Two, and Multisector Growth Models
• Thema: basic vs. applied science ; endogenous schooling decisions ; endogenous fertility decisions ; R&D-based growth ; governmental research policies

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Prettner, Klaus ; Werner, Katharina
• Ereignis: Veröffentlichung
• (wer): University of Göttingen, Center for European, Governance and Economic Development Research (cege)
• (wo): Göttingen
• (wann): 2014

Weitere Informationen

• Handle: http://hdl.handle.net/10419/92492