TY  - JOUR
AU  - Stokey,Nancy L.
TI  - Human Capital, Product Quality, And Growth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3413
PY  - 1990
Y2  - August 1990
UR  - http://www.nber.org/papers/w3413
L1  - http://www.nber.org/papers/w3413.pdf
N1  - Author contact info:
Nancy Stokey
Department of Economics
University of Chicago
1126 East 59th Street
Chicago, IL 60637
Tel: 773/702-0915
Fax: 773/834-3452
E-Mail: nstokey@uchicago.edu
AB  - A growth model is developed in which finite-lived individuals invest in human capital, and investments have a positive external effect on the human capital of later cohorts. Heterogeneous labor is the only factor of production, and higher-quality labor produces higher-quality goods. Stationary growth paths, along which human capital and the quality of consumption goods grow at a common, constant rate, are studied. It is also shown that if a small economy is very advanced or very backward relative to the rest of the world, then its rate of investment in human capital is lower under free trade than under autarky. 
ER  -