Manuscript received 23.9.11; final version received 9.3.12.
THE CONFLATING EFFECTS OF EDUCATION AND FINANCIAL COMPETITION IN AN OVERLAPPING GENERATIONS-GROWTH MODEL WITH NELSON–PHELPS HUMAN CAPITAL*
Article first published online: 4 DEC 2012
© 2012 The Author. The Manchester School © 2012 The University of Manchester and John Wiley & Sons Ltd
The Manchester School
Special Issue: Growth and Business Cycle in Theory and Practice. Proceedings of Centre for Growth and Business Cycle Research Conference, June 2011
Volume 81, Issue Supplement S2, pages 93–113, October 2013
How to Cite
ROBERTS, M. A. (2013), THE CONFLATING EFFECTS OF EDUCATION AND FINANCIAL COMPETITION IN AN OVERLAPPING GENERATIONS-GROWTH MODEL WITH NELSON–PHELPS HUMAN CAPITAL. The Manchester School, 81: 93–113. doi: 10.1111/j.1467-9957.2012.02324.x
- Issue published online: 30 OCT 2013
- Article first published online: 4 DEC 2012
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.