Topic 10: Endogenous Growth Model with Human Capital
Videos
Barriers to Economic Growth
- Our study of the Solow Growth Model provided a framework to understand how economies grow over time, and how poorer countries might grow fast enough to converge with richer countries. But of course, that doesn't always happen. In this video, we'll explore some of the barriers that can get in the way of economic growth.
Growth Accounting
- What specific channels are responsible for the economic growth we observe for any given country? Is growth due to the accumulation of physical capital, as in the Solow growth model? Is growth due to increased human capital or labor? Perhaps growth is attributable to increasing productivity? Growth accounting provides a technique for us to decompose the relative contributions from each of these different sources.
Endogenous Growth Model Setup
- The second (and final) growth model that we'll construct and study is an endogenous growth model where human capital accumulation is the engine for growth. This video introduces the main ideas of this model and describes the basic setup.
Endogenous Growth Model Competitive Equilibrium
- Finally, we can define the competitive equilibrium for this endogenous growth model and, within this environment, analyze how economic growth responds to particular technological or policy changes.