scholarly journals Knowledge Capital and Aggregate Income Differences: Development Accounting for US States

2017 ◽  
Vol 9 (4) ◽  
pp. 184-224 ◽  
Author(s):  
Eric A. Hanushek ◽  
Jens Ruhose ◽  
Ludger Woessmann
Keyword(s):  
Economic Development ◽  
School Improvement ◽  
Cognitive Skills ◽  
Knowledge Capital ◽  
Income Differences ◽  
School Attainment ◽  
Development Accounting ◽  
State Variation ◽  
State Economic Development ◽  
Standard Production

Improvement in human capital is often presumed to be important for state economic development, but little research links better education to state incomes. We develop detailed measures of worker skills in each state that incorporate cognitive skills from state- and countryof-origin achievement tests. These new measures of knowledge capital permit development accounting analyses calibrated with standard production parameters. Differences in knowledge capital account for 20–30 percent of the state variation in per capita GDP, with roughly even contributions by school attainment and cognitive skills. Similar results emerge from growth accounting analyses. These estimates support school improvement as a strategy for state economic development. (JEL I25, I26, J24, R11, R23)

Book Reviews

2015 ◽  
Vol 53 (4) ◽  
pp. 1027-1029
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Cognitive Skills ◽  
Economic Value ◽  
Developed Countries ◽  
Knowledge Capital ◽  
Long Run ◽  
University Of Munich ◽  
The University

Mikael Lindahl of University of Gothenburg reviews “The Knowledge Capital of Nations: Education and the Economics of Growth”, by Eric A. Hanushek and Ludger Woessmann. The Econlit abstract of this book begins: “Analyzes the premise that knowledge is the key to economic development, providing evidence that the development of cognitive skills correlates with long-run prosperity. Discusses a structure for understanding growth; knowledge capital and growth—the main results; causation; developing countries, focusing on Latin America and East Asia; developed countries, focusing on OECD countries; the economic value of educational reform; and policies to improve knowledge capital. Hanushek is Paul and Jean Hanna Senior Fellow in the Hoover Institution at Stanford University. Woessmann is Professor of Economics at the University of Munich and Director of the Ifo Center for the Economics of Education and Innovation.”

Targeted state economic development incentives and entrepreneurship

2018 ◽  
Vol 7 (3) ◽  
pp. 235-247 ◽  
Author(s):  
Meg Patrick Tuszynski ◽  
Dean Stansel
Keyword(s):  
Economic Development ◽  
Economic Freedom ◽  
Entrepreneurial Activity ◽  
Data Set ◽  
Content Type ◽  
Incentive Programs ◽  
Economic Development Incentives ◽  
State Economic Development ◽  
Development Incentives ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between state economic development incentives programs and entrepreneurial activity. Design/methodology/approach The authors use panel data and a fixed-effects model to examine the determinants of five measures of entrepreneurial activity. To measure state economic development incentives programs, they use a new and substantially improved data set from Bartik (2017). They also include a measure for economic freedom, the Fraser Institute’s Economic Freedom of North America index. Findings The authors find a robustly negative relationship between development incentives and patent activity. They find some evidence that incentives are negatively associated with small business establishments (<10 employees) as a percentage of total establishments but positively associated with the large business establishment (>500 employees) share. They also find evidence of a positive relationship between economic freedom and both patent activity and net business formation. Research limitations/implications The results imply that economic development incentive programs are unlikely to increase entrepreneurial activity and may decrease it. They also imply increased economic freedom (lower taxes, lower spending, and lower governmental restrictions on labor markets) may increase entrepreneurial activity. Originality/value To the authors’ knowledge, this paper provides the first examination of the relationship between development incentives and entrepreneurial activity that utilizes Bartik (2017), a new vastly improved data set of state economic development incentive programs. The paper also contributes to the literature on the relationship between economic freedom and entrepreneurial activity.

Is Entrepreneurship a Bio-Social Phenomenon?

2021 ◽  
pp. 1-33
Author(s):  
José Guilherme Leitão Dantas ◽  
Fernando Manuel Valente ◽  
Isabel Simões Dias
Keyword(s):  
Economic Development ◽  
Literature Review ◽  
Educational System ◽  
Cognitive Skills ◽  
Entrepreneurial Activity ◽  
Social Phenomenon ◽  
Exploratory Approach ◽  
Teachers Training ◽  
The Way

The entrepreneur is regarded as a driver of economic development encouraging researchers to delve into the causes that lead some people to choose the entrepreneurial activity. The response has followed two approaches: biological and sociological. The former privileges non-cognitive skills while the sociological favors factors are associated with learning and contextual conditions. Thus, the question arises: Is behavior determined by non-cognitive skills or can it be 'shaped' throughout an individual's lifetime? Using an exploratory approach supported by a literature review and contacts with the Portuguese (context under analysis) educational system, the authors aim to understand which skills are critical, the way they are acquired and developed, and the role the educational system plays in their development, concluding that entrepreneurial activity implies cognitive and non-cognitive skills which the system must deliver provided the teachers' training in advance.

State Economic Development Policy: A Decade of Activity

1991 ◽  
Vol 51 (2) ◽  
pp. 171 ◽  
Author(s):  
DeLysa Burnier ◽  
Keon Chi ◽  
Lee Walker ◽  
Roger Wilson
Keyword(s):  
Economic Development ◽  
Development Policy ◽  
Economic Development Policy ◽  
State Economic Development
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