The Nelson–Phelps concept of human capital, determining the speed at which a new technology may be implemented, is considered within an AK, overlapping-generations model, where finance firms act as local monopolies in the loan market but as monopsonistic price-takers in the deposit market. Households also vote for taxes earmarked for public investment in education and, thence, the subsequent level of human capital. A concentrated financial market structure, despite directly lowering economic growth, may indirectly raise it through provoking a political economy response of voting for higher taxes for greater levels of Nelson–Phelps human capital.